Victorian Gas Distribution Business Comparative
Performance Report 2012
February 2014
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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.
© Commonwealth of Australia 2013
This work is copyright. Apart from any use permitted by the Copyright Act 1968, no part may be reproduced
without permission of the Australian Competition and Consumer Commission. Requests and inquiries
concerning reproduction and rights should be addressed to the Director Publishing, Australian Competition
and Consumer Commission, GPO Box 3131, Canberra ACT 2601.
Inquiries about these guidelines should be addressed to:
Australian Energy Regulator
GPO Box 520
Melbourne Vic 3001
Tel: (03) 9290 1444
Fax: (03) 9290 1457
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Email: AERInquiry@aer.gov.au
Version
Date
Pages
1
6 February 2014
85
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Contents
Contents .................................................................................................................................................. 4
Preface .................................................................................................................................................... 6
Overview .................................................................................................................................................. 9
1
2
3
Summary ........................................................................................................................................ 12
1.1
Main features of the Victorian distribution network ..................................................................... 12
1.2
Financial performance ............................................................................................................... 12
1.3
Reliability of supply ................................................................................................................... 17
1.4
Network integrity ....................................................................................................................... 20
1.5
Customer service ...................................................................................................................... 24
1.6
Format of Report ...................................................................................................................... 28
Summary by Business .................................................................................................................... 29
2.1
Envestra ................................................................................................................................... 29
2.2
Multinet .................................................................................................................................... 37
2.3
SP AusNet ............................................................................................................................... 45
Source of information and background information........................................................................ 53
3.1
4
Sources of information .............................................................................................................. 53
Financial performance .................................................................................................................... 54
4.1
Inflation adjustment ................................................................................................................... 54
4.2
Gas distributed ......................................................................................................................... 54
4.3
Tariff V ..................................................................................................................................... 55
4.4
Tariff D ..................................................................................................................................... 58
4.5
Return on assets ...................................................................................................................... 60
4.6
Revenue................................................................................................................................... 61
4.7
Distribution expenditure............................................................................................................. 65
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5
6
7
A
Reliability of supply ........................................................................................................................ 71
5.1
Average Minutes-off-supply per customer (SAIDI) .................................................................... 71
5.2
Average number of interruptions per customer ........................................................................... 73
5.3
Average interruption duration (minutes per interruption) — Interruption duration CAIDI ............... 75
5.4
Number of unplanned outages .................................................................................................. 76
5.5
Significant supply interruption events in 2012 ............................................................................ 78
Network integrity ............................................................................................................................ 79
6.1
Loss of containment .................................................................................................................. 79
6.2
Mechanical damage .................................................................................................................. 81
6.3
Service connection damage ...................................................................................................... 82
6.4
Low pressure network replacement ........................................................................................... 83
Customer Service ........................................................................................................................... 88
7.1
Response to customer calls ...................................................................................................... 88
7.2
Guaranteed Service Level payments ......................................................................................... 90
7.3
Complaints ............................................................................................................................... 94
APPENDICES ............................................................................................................................... 100
A.1
Network Characteristics .......................................................................................................... 100
A.2
Gas haulage tariffs ................................................................................................................. 103
A.3
Performance measures for reliability of supply ......................................................................... 104
A.4
Guaranteed Service Levels ...................................................................................................... 113
A.5
Gas escape / job priority classification..................................................................................... 117
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Preface
The role of the Australian Energy Regulator
Gas distribution network businesses offer a number of key services relating to the transport of gas (referred
to as haulage reference services). They also offer a number of one-off services including meter and
installation testing and disconnection and reconnection, known as ancillary references services. The terms,
conditions and tariffs associated with these services are regulated by the Australian Energy Regulator.
On July 1 2008, the AER became the economic regulator for covered natural gas transmission and
distribution pipelines in all states and territories except Western Australia. As the economic regulator of gas
distribution, we are responsible for exercising certain powers and functions previously undertaken by the
Essential Services Commission of Victoria (ESCV). As part of this role, we:

administered and reported on the ESCV’s Gas Access Arrangement 2008–2012 (GAAR) under the
Victorian regulatory framework.

are responsible for compliance monitoring (including service performance) and enforcement of the gas
distribution licence conditions of the Victorian gas distribution network service providers (commonly
referred to as gas DNSPs).
This is the last of the Victorian-specific gas reports released by the AER covering the 2008–12 GAAR
period. Future gas performance reports will incorporate all jurisdictions that we regulate. 1
Previous reports published by the ESCV are available from the ESCV’s website:
http://www.esc.vic.gov.au/Energy/Compliance/publications
Purpose of this report
The purpose of this report is to highlight the performance of the three gas DNSPs in Victoria, Envestra,
Multinet and SP AusNet for the 2012 calendar year.
1
The AER in March 2013 completed its determination on the Victorian DNSPs' 2013–17 Gas Access Arrangement. Future
performance reports will record performance against the benchmarks set in that determination.
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The report allows the financial performance, reliability, and quality of gas supply to be compared between
the Victorian gas DNSPs. Their financial and operating performance is also contrasted with the benchmarks
established in the 2008–2012 GAAR. Reporting gas DNSPs performances helps:

promote transparency and assist us with setting regulatory benchmarks in future gas determinations

encourage competition between gas DNSPs through basic benchmarking

provide an incentive for gas DNSPs to improve performance

provide customers with information about the services they are receiving.
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SPI
SPI
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Overview
This report summarises the three Victorian gas DNSPs financial performance, reliability of supply, network
integrity and customer service during the period 2008–12.
The businesses' financial performance is dependent on the quantity of gas usage by customers. For the
access arrangement, small customers total cumulative gas usage was 1.4 per cent higher than forecast for
2012. This indicates that actual gas usage was similar to the ESCV's benchmark in the GAAR.
Envestra was the only gas DNSP to distribute less gas than forecast. Residential gas consumption is largely
influenced by weather and differences from forecast gas usage are likely due to colder or warmer weather.
The recent push towards more energy efficient appliances may also explain, in part, the difference between
forecast and actual gas usage of small residential customers in its area.
Gas consumption of large commercial and manufacturing customers is less influenced by weather and more
the overall performance of the economy. In 2012 gas consumption by these customers declined 3.3 per
cent across Victoria, with each business experiencing a decline in consumption from large customers. This
is most likely a reflection of the changing structure of the Victorian economy and in particular the ongoing
decline in manufacturing.
During the 2008–12 access arrangement, the businesses undertook less mains replacement than they had
been funded for. Setting revenues in our 2013–17 access arrangement, we were concerned that customers
should not pay twice for infrastructure upgrades. We therefore approved the same volume of mains
replacement that was achieved by the businesses in 2008–12. However, we will allow the businesses to
apply for extra funding should this be required to meet their service obligations and the long term interests
of customers.
That said, past asset upgrades and replacements and improvements in operating performance have led to
sustained reliability improvements. For instance, since 2003 the industry average is one customer
interruption every 46 years.
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Similarly to the electricity sector, consumption has been falling, as commercial demand tapers due to
closure of industrial and manufacturing facilities, while milder winters in recent times has reduced household
heating needs.
For 2012 financial performance, Envestra reported:

an increase in revenue, capex and opex compared to the previous year of 5.9 per cent, 38.7 per cent
and 8.8 per cent respectively

a 8.2 per cent return on assets.

0.8 per cent lower actual revenue, 7.1 per cent higher capex and 13.8 per cent higher opex compared
to the access arrangement benchmarks.
Multinet reported:

an increase in revenue, capex and opex compared to 2011 of 2.0 per cent, 21.6 per cent and 32.7 per
cent

a 7.4 per cent return on assets

0.5 per cent higher actual revenue, 59.5 per cent higher capex and 57.5 per cent higher opex
compared to access arrangement benchmarks for 2012.
SP AusNet reported:

an increase in revenue and opex compared to 2011 of 5.1 per cent and 16.9 per cent respectively and
a 4.9 per cent decline in capex

a 9.4 per cent return on assets

2.6 per cent higher actual revenue, 4.7 per cent lower opex and 11.7 per cent higher capex compared
to benchmarks set in the access arrangement.
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Maintaining the network is critical to preserving reliability of supply to customers. In 2012 customers
experienced the equivalent of one supply interruption every 362 years. There was some variation in the
number of supply interruptions between the businesses. In particular, one supply interruption in 22 years for
Envestra customers, 72 years in Multinet’s territory and 38 years in the case of SP AusNet. Since 2003,
the average for all businesses is one supply interruption every 46 years. For Envestra it is one interruption
every 58 years, Multinet one every 59 years and SP AusNet one every 40 years.
In 2012, Envestra made the most Guaranteed Service Level (GSL) payments (582) totalling $81,954.
Payments were mostly for interruptions lasting longer than 12 hours but less than 18 hours. SP AusNet
made the least number of payments (206) totalling $20,817.
2
This is calculated by dividing one by the number to total planned and unplanned interruptions.
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1
Summary
1.1
Main features of the Victorian distribution network
There are three gas distribution network businesses in Victoria:

SP AusNet (central and western Victoria)

Multinet (inner and outer east metropolitan area, the Yarra Ranges and South Gippsland)

Envestra (central and south east metropolitan, northern Victoria and south east to Moe and Sale).
Collectively the businesses distribute gas to over 1.89 million domestic and non-domestic customers via a
total pipeline length of 30,145 kilometres.3 Appendix A.1 sets out the main features of the Victorian gas
distribution network businesses.
In this report the benchmark and actual revenue and costs relate to both reference and ancillary reference
services.
1.2
Financial performance
The financial performance of the gas DNSPs is affected in part by the volume of gas they distribute. In
2012 the amount of gas distributed to Tariff V (small customers) in Victoria was 119,789 terajoules, 5 per
cent higher than in 2011. The three businesses reported the following:

Envestra distributing less gas to tariff V customers (2.6 per cent) and earning lower revenue
(0.8 per cent) than forecasts

SP AusNet distributing more gas to tariff V customers (2.8 per cent) and earning higher revenue (2.6
per cent) than forecasts

Multinet distributing more gas to tariff V customers (3.5 per cent) and earning higher revenue
(2.2 per cent) than forecasts.
3
A distribution customer is defined as any supply point through which gas is delivered from a distribution network identified as a
separate account for billing purposes. The number of customers is based on the number of active meters.
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Figure 1.2.1 shows the difference between forecasts and actual gas distributed to tariff V customers since
2004. It shows that Envestra has consistently reported less actual tariff V distributed than forecast over the
access arrangement period, with differences in individual years of between 0.05 per cent (in 2006) and 9.29 per cent (in 2007).
Multinet and SP AusNet on the other hand have had both positive and negative variances between
forecasts and actual gas distributed.
Figure 1.2.1
Percentage difference between forecast and actual gas distributed to tariff V
customers
5%
Variance
0%
-5%
Envestra Vic
Source:
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-15%
2004
-10%
SP AusNet
ESCV 2008-12 Gas Access Arrangement review, ESCV 2002 GAAR and DNSP regulatory accounting reports and
quarterly reports
Note:
A positive percentage represents actual gas distributed to tariff V being higher than the 2003 and 2008 GAAR forecasts.
The distribution of gas to tariff D (industrial and commercial customers) was not forecast at the time of the
2008-12 GAAR and hence comparisons to forecasts cannot be made. However, for Tariff D customers, the
maximum hourly quantity (MHQ) or peak demand increased by 2.1 per cent for all gas DNSPs. Actual gas
distributed to tariff D customers across all the businesses declined by 3.3 per cent. Since 2008 gas
distribution for MHQ and tariff D decreased by 4.6 per cent and 13.1 per cent respectively across the
industry. Further information relating to gas being distributed is provided in section 4 of this report.
In 2012, aggregate industry revenue was 0.8 per cent higher than forecast. Revenue for Multinet and SP
AusNet was higher than forecasts by 2.2 per cent and 2.6 per cent while Envestra was 0.8 per cent lower
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than forecast. During the 2008–12 regulatory period Envestra collected 2 per cent less revenue than
forecast, with SP AusNet earning 1.9 per cent and Multinet 2.3 per cent more revenue than forecasts.
Figure 1.2.2 shows the percentage difference between actual and forecast revenue since 2004.
Figure 1.2.2
Percentage difference between total forecast and total actual revenue (including
revenue for ancillary reference services 4)
10%
Variance
5%
0%
Envestra Vic
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-10%
2004
-5%
SP AusNet
Source:
ESCV 2008-12 GAAR, ESCV 2002 GAAR and DNSP regulatory accounting reports and quarterly reports
Note:
A positive percentage represents actual revenue higher than the 2003 and 2008 GAAR forecasts.
Overall, the gas DNSPs spent 19.6 per cent more on operating expenditure (opex) in 2012 compared to
the previous year. In 2012, aggregate opex for all businesses was also 20.7 per cent above forecast for
that year. Envestra and Multinet’s opex was higher than forecast by 13.8 per cent and 57.5 per cent
respectively. In contrast, SP AusNet's opex was 4.7 per cent below its 2012 forecast. Figure 1.2.3 shows
the percentage difference between forecast and actual operating expenditure. Further information relating to
operating expenditure is provided in section 4 of this report.
4
Ancillary reference services include: new connections, disconnection, meter and gas installation and special meter reads.
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Figure 1.2.3
Percentage difference between forecast and actual operating expenditure
70%
60%
50%
40%
variance
30%
20%
10%
0%
-10%
Envestra Vic
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-30%
2004
-20%
SP AusNet
Source:
ESCV 2008-12 GAAR, ESCV 2002 GAAR and DNSP regulatory accounting reports and quarterly reports
Note:
A positive percentage represents actual opex higher than the 2003 and 2008 GAAR forecasts.
Overall actual capex for 2012 increased by 17.4 per cent across all gas DNSPs and was 20.3 per cent
above the forecast. All gas distributors incurred higher capex than forecast; Multinet by 59.5 per cent, SP
AusNet 11.7 per cent and Envestra by 7.1 per cent. The higher capex incurred by Multinet may be due to
the timing of its capex program or to catch up with its capital allowance. Figure 1.2.4 shows the difference
between forecast and actual capex. Further information relating to capital expenditure is provided in section
3 of this report.
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Figure 1.2.4
Percentage difference between forecast and actual capital expenditure
80%
60%
40%
20%
variance
0%
-20%
-40%
-60%
Envestra Vic
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-100%
2004
-80%
SP AusNet
Source:
ESCV 2008-12 GAAR and 2002 GAAR and DNSP regulatory accounting reports and quarterly reports
Note:
A positive percentage represents actual capex higher than the 2003 and 2008 GAAR forecasts.
Table 1.2.1 shows the return on assets achieved by each DNSP compared to forecasts made at the time of
the 2008 GAAR.
Further information relating to financial performance is provided in section 3 of this report.
Table 1.2.1
Return on assets 2012, per cent
Forecast pre-tax return
Actual pre-tax return on
on assets
assets
Envestra
6.8
8.2
1.4
Multinet
8.1
7.4
-0.7
SP AusNet
7.7
9.4
2.2
Distributor
Source:
Variance
ESCV 2008-12 GAAR and revisions to GAAR and DNSP annual regulatory accounting reports
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1.3
Reliability of supply
Across the industry, the average Victorian customer experienced supply interruption's equivalent to once
every 36 years which was a 14.6 per cent decrease compared to 2011.5
There was some variation in the number of supply interruptions reported. While Envestra's customers
experienced the industry average interruption, there was one supply interruption every 22 years for
Multinet’s customers, while those in SP AusNet area suffered one disruption every 38 years.
Reliability of supply is typically measured by the following reliability performance reporting indicators 6:

System Average Interruption Duration Index (SAIDI)—measures the total duration of supply interruption
for the average customer on the network.

System Average Interruption Frequency Index (SAIFI)—measures how often the average customer
experiences a supply interruption.

Customer Average Interruption Duration Index (CAIDI)—measures the total duration of supply
interruption for those customers who have experienced an interruption during the year.
Figure 1.3.1 and figure 1.3.2 shows the average number of supply interruptions per customer (SAIFI) and
the total duration of supply interruption (CAIDI) per customer, respectively. Figure 1.3.3 shows the minutes
off supply from these interruptions (SAIDI) per customer.
While the number of planned and unplanned interruptions per customer (SAIFI) was reduced in 2012 by
6.0 per cent, the overall minutes off supply per customer (SAIDI) increased 3.2 per cent compared to 2011.
This was driven by the duration of interruptions per customer (CAIDI), which increased by 2.7 per cent
across all DNSPs.
5
This is calculated by dividing one by the number to total planned and unplanned interruptions. (the numbers in figure 1.3.1 have
been converted using this formula).
6
A description of the performance indicators is set out in more detail in appendix A.3.
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Multinet commented that significant rainfall experienced in the period under review resulted in an increase in
unplanned supply interruptions—primarily as a result of water ingress to the low pressure portion of the
Multinet network.
Envestra commented that the step change in unplanned interruptions in 2010 does not reflect a
deterioration of network performance but a change in reporting to include all supply interruptions (results are
also not directly comparable to other businesses). Envestra also notes that the increase in planned
interruptions reflects the recent expansion in mains renewal works.
Figure 1.3.1
Average number of planned and unplanned interruptions per customer (SAIFI)
0.050
0.045
0.040
interruptions/customer
0.035
0.030
0.025
0.020
0.015
0.010
0.005
Envestra
Multinet
Planned
Source:
SP AusNet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.000
All distributors
Unplanned
AER calculations based on DNSP quarterly KPI reports
Note: The System Average Interruption Frequency Index (SAIFI) is the average number of interruptions that a customer would
experience, and is calculated as the total number of customer interruptions divided by the total number of customers served. Due to
different methodologies of reporting outages between businesses direct comparisons between businesses cannot be made.
Figure 1.3.2
Average duration of interruptions for those customers experiencing an interruption
(CAIDI)
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800
700
Minutes
600
500
400
300
200
100
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Envestra
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
SP AusNet
All distributors
Multinet
Planned
Source:
Unplanned
AER calculations based on DNSPs quarterly KPI reports
Note: CAIDI is the customer average interruption duration Index. It is related to SAIDI and SAIFI, and is calculated as the sum of all
customer interruption durations divided by the total number of customer interruptions or (SAIDI / SAIFI). Due to different
methodologies of reporting outages between businesses direct comparisons between businesses cannot be made.
Figure 1.3.3
Average minutes-off-supply per customer (SAIDI)
12
Minutes
10
8
6
4
2
Planned
Source:
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Multinet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Envestra
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
SP AusNet
All distributors
Unplanned
AER calculations based on DNSPs quarterly KPI reports
Note: The increase in planned interruptions for Envestra and SP AusNet reflect the increased level of mains renewal works completed
in 2012.
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Note: The System Average Interruption Duration Index (SAIDI) is the average outage duration for each customer served, and is
calculated as: the sum of all customer interruption durations divided by the total number of customers served. SAIDI is measured in
unites of time (minutes).
1.4
Network integrity
A critical aspect of gas supply safety is network integrity, which can be measured in terms of loss of
containment (leakages), third-party damage (mechanical damage and service connection damage) and
replacement of aged assets. Figures 1.4.1 to 1.4.3 indicate that the DNSPs have generally improved their
performance on the majority of these measures compared to 2011.
Loss of containment
Figure 1.4.1 shows the number of publicly reported and repaired gas leaks per distributor. In 2012 the total
number of gas leaks reported and repaired across all DNSPs increased by 3 per cent compared to 2011.
Figure 1.4.1
Repaired leaks per kilometre of gas pipe
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1.40
1.20
Leaks per km
1.00
0.80
0.60
0.40
0.20
Envestra
Source:
Multinet
SP AusNet
2012
2011
2010
2009
2008
2011
2012
2010
2009
2008
2011
2012
2010
2009
2008
2011
2012
2010
2009
2008
0.00
All Distributors
DNSP quarterly KPI reports
Mechanical damage
The reporting of mechanical damage and service impairment monitors the structural and functional integrity
of the DNSPs' networks. External damage to networks is a significant cause of gas escapes and customer
supply interruptions.
Figure 1.4.2 shows the number of incidents of mechanical damage to mains per kilometre. In 2012, DNSPs
reported a 9 per cent decline in damage to gas distribution mains.
Figure 1.4.2
Mechanical damage to mains - number of incidents per kilometre of distribution mains
0.0160
0.0140
Damages per km
0.0120
0.0100
0.0080
0.0060
0.0040
Envestra
Source:
Multinet
SP AusNet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.0000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.0020
All distributors
DNSP quarterly KPI reports
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Service connection damage
Figure 1.4.3 shows the damage to service connections. There were 2846 incidents of damage to customer
service connections in 2012. This represents 141 fewer incidents, or a 5 per cent improvement during the
year.
Figure 1.4.3
Service damage per customer 2003–2012
2.0
Envestra
Source:
Multinet
SP AusNet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Damages per customer connection
3.0
All distributors
DNSP quarterly KPI reports
Low pressure network replacement
Another significant cause of gas escapes is chronic leakage from older, generally low pressure pipes.
Figure 1.4.4 shows the cumulative number of low pressure kilometres of gas mains decommissioned and
replaced with high pressure pipelines for each DNSP compared to levels for which they were funded during
the 2008–12 access arrangement period. This shows that all DNSPs are below target.
For the 2013–17 access arrangement decision we noted that over the previous two access arrangement
periods the businesses had completed fewer kilometres of mains than was either proposed by them or
approved as a regulatory benchmark. We considered that the businesses safety and regulatory obligations
and the mains risk would not materially change over the 2013–17 access arrangement period compared
with the 2008-12 access arrangement. We therefore approved the same volume of mains replacement that
was undertaken by the businesses in the 2008–12 access arrangement. However, recognising that
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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circumstances may change, we provided for a pass through, whereby the businesses could seek approval
for additional volumes to meet their obligations in a manner that best serves the long term interests of
customers.
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Figure 1.4.4
Replacement of low pressure gas mains with high pressure against target up to 2012
SP AusNet
Multinet
Envestra
0%
20%
40%
Actual
Source:
1.5
60%
80%
100%
Target
DNSP quarterly KPI reports
Customer service
Customer service is measured by the businesses in terms of their performance in responding to calls about
service incidents, meeting customers' appointments on time, making supply connections and maintaining
supply reliability above the minimum reliability level. The distribution businesses report on these key
performance indicators to the AER. Complaints about the distribution businesses customer service are
reported to and handled by the Energy and Water Ombudsman Victoria (EWOV).
Response to customer calls
The DNSPs are required to report on their response time to customer calls in relation to targets established
by the ESCV.7 Not all businesses were able to exceed all of the targets for responding to customer calls.
7
Metropolitan target—to respond to 95 per cent of calls within 60 minutes during business hours and 90 per cent within 60
minutes after hours; Non-metropolitan target—to respond to 90 per cent within 60 minutes, all hours.
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Guaranteed service level scheme
In 2008 the ESCV revised its GSL scheme as part of the 2008–12 GAAR. As a result of this decision,
historical data provided in previous comparative reports are no longer comparable to the new parameters
set out in the GAAR and reported in this report. The main objective of the GSL scheme is to improve
service and reliability levels to the worst served customers. The areas of service targeted by the scheme
include repeat interruptions, lengthy interruptions, appointments and connections.
In 2012 Envestra made the most GSL payments (582) totalling $81,954. The majority of these payments
were for interruptions lasting longer than 18 hours. SP AusNet made the least number of payments (207)
totalling around $20,817.
Figure 1.5.1
Total number of GSL payments (includes repeat interruptions, lengthy interruptions,
appointments and connections)
1,400
Number of GSL payments
1,200
1,000
800
600
400
200
20092010 2011 2012
Envestra
Source:
20092010 2011 2012
Multinet
20092010 2011 2012
SP Ausnet
20092010 2011 2012
All distributors
DNSP KPI reports
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
25
Figure 1.5.2
Total amount paid for GSL payments (includes repeat interruptions, lengthy
interruptions, appointments and connections)
200
180
160
140
$'000
120
100
80
60
40
20
0
2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012
Envestra
Source:
Multinet
SP Ausnet
All distributors
DNSP quarterly KPI reports.
Customer complaints
In 2012, the total number of customer complaints received by the DNSPs increased by 70 per cent. In
particular, complaints in relation to connection and augmentation were up by 84 per cent, while 'other'
complaints increased by 81 per cent (refer to Figure 1.5.3). Conversely complaints in relation to quality and
reliability of supply declined, by 58 per cent. Complaints against MultiNet for poor connection and
augmentations work were the chief reasons for the deterioration in industry performance (see Table A.3.7).
Figure 1.5.3
Number of complaints received by distributers per 1000 customers
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
26
1.80
complaints per 1000 customers
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
2004
2005
2006
2007
2008
2009
2010
2011
2012
2004
2005
2006
2007
2008
2009
2010
2011
2012
2004
2005
2006
2007
2008
2009
2010
2011
2012
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.00
Envestra
Multinet
SP AusNet
connections
Source:
quality
All DNSPs
other
DNSP quarterly KPI reports.
Complaints received for full investigation by the Energy and Water Ombudsman Victoria (EWOV) fell by 63
per cent, from 91 in 2011 to 34 in 2012. Figure 1.5.4 illustrates the total number of complaints received by
EWOV for full investigation for each of the DNSPs since 2004. Note that not all complaints received by the
businesses are dealt with by EWOV. Most complaints are resolved between the customer and the business
without further recourse to the ombudsman.
Figure 1.5.4
Complaints received by EWOV for full investigation
60
Number of complaints
50
40
30
20
10
0
2004
2005
2006
2007
Envestra
Source:
2008
Multinet
2009
2010
2011
2012
SP AusNet
Energy and Water Ombudsman Victoria
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
27
1.6
Format of Report
This report is structured as follows:

Part 2 provides a summary for each DNSP.

Part 3 outlines DNSPs reported financial performance against their forecasts in the 2008–12 GAAR.

Part 4 outlines the gas businesses financial performance.

Part 5 outlines the integrity of the gas networks.

Part 7 outlines the levels of customer service achieved by the DNSPs.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
28
2
Summary by Business
2.1
Envestra
Figure 2.1.1 Comparison of forecast and actual gas distributed to tariff V customers
Figure 2.1.1 shows the actual gas distributed
40,000
by Envestra to tariff V (small) customers
35,000
compared
Tariff V GJ distribured
30,000
25,000
to
forecasts.
Envestra
has
consistently distributed less gas than it has
20,000
15,000
forecast. Since 2008 actual gas distributed
10,000
has been between - 1.5 per cent and -
5,000
-
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Actual TJ Distributed - Tariff V
Forecast TJ Distributed - Tariff V
6.2per cent less than forecast. This is
largely driven by a decrease in average
consumption per customer.
Figure 2.1.2 Actual Gas distributed to tariff D customers and maximum hourly quantity (MHQ)
25,000
8,000
7,000
20,000
6,000
5,000
15,000
T
J
G
J
10,000
4,000
3,000
2,000
5,000
1,000
-
2004
2005
2006
2007
Actual TJ Distributed - Tariff D
2008
2009
2010
2011
2012
Actual GJ Distributed - Tariff D (MHQ)
Figure 2.1.2 shows that the distribution of
gas to tariff D MHQ for commercial and
industrial customers has decreased since
2004. The greatest decline was in 2009
and 2010. Envestra commented that the
decline
reflects
the
ongoing
structural
change in the Victorian economy driven by
the decline in manufacturing.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
29
Financial Performance
Envestra earned less revenue overall between 2008 and 2012 than was forecast. This was largely
reflective of gas consumption from both tariff V and D customers being less than forecast. Despite this
Envestra was able to earn an actual pre-tax return on assets better than forecast of between 0.7 per cent
and 3.24 per cent (see Table 4.5.1). The higher than forecast return on assets may be largely explained by
Envestra spending less than its approved capex allowance during the global financial crisis.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
30
Figure 2.1.3
Comparison of forecast and actual revenue
Figure
$180,000
$160,000
2.1.3
shows
Envestra's
actual
revenue earned against forecast revenue.
$140,000
Over the 2008-12 access arrangement
$120,000
$100,000
period, Envestra has earned 2.0 per cent
$80,000
$60,000
less revenue than forecast.
$40,000
$20,000
$2004 2005 2006 2007
Actual revenue
Figure 2.1.4
2008 2009 2010 2011 2012
Forecast revenue
Comparison of forecast and actual expenditure
Figure 2.1.4 is Envestra's actual opex and
$90,000
$80,000
capex against its forecasts. This shows that
$70,000
while Envestra's opex has largely reflected
$60,000
$50,000
forecasts, capex has been significantly
$40,000
$30,000
below forecasts. In particular, Envestra has
$20,000
only reached around 63 per cent of its
$10,000
$2004
2005
Actual capex
2006
2007
Actual opex
2008
2009
Forecast capex
2010
2011
2012
Forecast opex
target for replacing low pressure mains.
Envestra has restored its capex program
following the passing of the global financial crisis.
Figure 2.1.5
Cumulative actual capex against forecast capex
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
31
Figure
$450,000
$400,000
2.1.5
shows
Envestra's
actual
cumulative capex compared to the 2008
$350,000
forecast. At the end of 2012 Envestra's
$300,000
$250,000
cumulative capex over the period was 27
$200,000
$150,000
per cent less than forecast. As already
$100,000
noted, Envestra temporarily curtailed its
$50,000
$2008
2009
2010
Actual capex
2011
2012
Forecast capex
capex program in order to manage its way
through the global financial crisis.
Reliability of supply
Figures 2.1.6, 2.1.7 and 2.1.8 indicate Envestra's reliability of supply.
Figure 2.1.6
Average minutes-off-supply per customer (SAIDI)
This shows that over the 2008 to 2012
8
period reliability of supply as reflected by
7
SAIDI and SAIFI has deteriorated, in
Minutes
6
5
particular
4
3
for
planned
interruptions.
Envestra has however commented this is
2
due to their asset replacement program.
1
Unplanned
Planned
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0
Envestra also notes that the increase in
interruptions since 2010 reflects changes in
reporting rather than deterioration in performance.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
32
Figure 2.1.7
Average number of interruptions per customer (SAIFI)
0.030
See the above commentary.
Minutes
0.025
0.020
0.015
0.010
0.005
Unplanned
Figure 2.1.8
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0.000
Planned
Average interruption duration per customer (CAIDI)
Figure 2.1.8 shows that CAIDI has been
600
relatively stable for the last three years
Minutes
500
despite increases in the average minutes off
400
supply per customer and the number of
300
200
interruptions per customer (with declines in
100
Unplanned
Planned
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0
CAIDI for unplanned interruptions again
attributable to reporting changes).
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
33
Figure 2.1.9
Number of outages affecting 5 customers or fewer
Figures 2.1.9 and 2.1.10 show the number
16
of outages affecting 5 customers or fewer
14
and the number of outages affecting more
Thousands
12
10
than five customers. In 2012 the number of
8
outages affecting fewer than 5 customers
6
4
has increased slightly by 2.5 per cent
2
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
(again, driven by reporting changes and not
a deterioration in network performance). The parameters for the scheme were altered in 2009.
Consequently data before then should not be compared with the current period.
Figure 2.1.10
Number of outages affecting more than five customers
Between 2011 and 2012 there was a
40
decrease of 16.7 per cent in the number of
35
outages affecting more than five customers.
30
25
This results in this metric being more in line
20
with historical performance.
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2011
2012
Network Integrity
Figure 2.1.11
Replacement of low pressure gas mains with high pressure against target
Figure 2.1.11 shows the replacement of low
2012
pressure gas mains with high pressure
2011
against target. Overall Envestra at the end
2010
2009
2008
0
100
200
300
400
500
600
Victorian Gas Distribution businesskilometers
performance comparative report 2012 | Performance Report
Cumulative Actual
Cumulative Target
34
of 2012 had achieved 63 per cent of its target to replace the low pressure network.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
35
Customer service
Envestra experienced one GSL payment per 1,150 customers in 2012. Envestra paid an aggregate of $81
954 ($2006) in GSL payments. This is a decrease in performance since 2009 when there was one
payment per 1,300 customers. Overall the number of payments made by Envestra increased from 412 in
2009 to 582 in 2012.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
36
2.2
Multinet
Figure 2.2.1
Comparison of forecast and actual gas distributed to tariff V customers
50,000
Figure 2.2.1 show that for this access
48,000
arrangement
46,000
consistently distributed more gas to tariff V
44,000
customers than forecast. The aggregate gas
42,000
distributed to tariff V customers between
40,000
2008 and 2012 was 2.4 per cent more
38,000
2004 2005 2006 2007
Figure 2.2.2
Actual Gas distributed to tariff D customers and maximum hourly quantity (MHQ)
5,000
4,500
14,000
4,000
12,000
3,500
10,000
3,000
T
J
G
J
2,500
2,000
6,000
1,500
4,000
1,000
2,000
500
-
Figure 2.2.2 shows that since 2004 gas
distributed to tariff D (commercial and
manufacturing)
customers
has
2005
2006
2007
Actual TJ Distributed - Tariff D
2008
2009
2010
2011
been
declining. In 2012 MHQ tariff D (MHQ) was
17.3 per cent less than in 2004 and tariff D
was 19.6 per cent less than in 2004.
2004
has
Forecast TJ Distributed - Tariff V
16,000
8,000
Multinet
than forecast.
2008 2009 2010 2011 2012
Actual TJ Distributed - Tariff V
period
2012
Actual GJ Distributed - Tariff D (MHQ)
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
37
Financial performance
In 2012 Multinet achieved an actual pre-tax return on assets of 7.38 per cent (refer to Table 4.5.1). This is
most likely a result of Multinet's actual capex and opex being higher than forecast.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
38
Figure 2.2.3
Comparison of forecast and actual revenue
Between 2008 and 2012 Multinet has
$180,000
$160,000
consistently earned more revenue than
$140,000
forecast of between 0.92 to 1.63 per cent.
$120,000
$100,000
The cumulative actual aggregate revenue
$80,000
$60,000
from 2008 to 2012 is 0.4 per cent more
$40,000
than forecast.
$20,000
$2004 2005 2006 2007
Actual revenue
Figure 2.2.4
2008 2009 2010 2011 2012
Forecast revenue
Comparison of forecast and actual expenditure
$70,000
Figure 2.2.4 shows that Multinet has
$60,000
consistently spent more opex than forecast
$50,000
$40,000
between 2008 and 2012. Ranging from 6.7
$30,000
per cent in 2009 to 57.5 per cent in 2012.
$20,000
On the other hand Multinet underspent on
$10,000
$2004
2005
Actual capex
2006
2007
Actual opex
2008
2009
2010
Forecast capex
2011
2012
Forecast opex
capex in 2008, 2009 and 2010 by 17.5 per
cent, 82.2 per cent and 31 per cent
respectively. However, in 2011 and 2012 Multinet spent 26.2 and 59.5 per cent more capex than forecasts.
Figure 2.2.5
$250,000
Comparison of actual
against forecast capex
$200,000
$150,000
Figure 2.2.5 shows cumulative actual capex
$100,000
against forecast capex. At the end of 2012
$50,000
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
$-
2008
2009
Actual capex
2010
2011
Forecast capex
2012
39
Multinet had spent 17 per cent less on capex than forecast for the period 2008 to 2011. This
underspending in capex has resulted in less replacement of old assets than target for the period. Figure
2.2.11 shows that Multinet has only replaced 83 per cent of its target.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
40
Figure 2.2.6
Average minutes-off-supply per customer (SAIDI)
Figures 2.2.6, 2.2.7 and 2.2.8 measure
8
Multinet's reliability of supply. The data for
7
Minutes
6
2012 for all three reliability measures
5
4
remained stable.
3
2
1
Un plann ed
Figure 2.2.7
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0
Plann ed
Average number of interruptions per customer (SAIFI)
See the above commentary.
0.025
Minutes
0.020
0.015
0.010
0.005
Unplanned
Figure 2.2.8
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0.000
Planned
Average interruption duration per customer (CAIDI)
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
41
400
350
Minutes
300
250
200
150
100
50
Unplanned
20 12
20 11
20 10
20 09
20 08
20 07
20 06
20 05
20 04
20 03
0
Planned
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
42
Figure 2.2.9
Number of outages affecting 5 customers or fewer
In 2012 the number of outages affecting 5
16
customers or fewer declined by 24 per cent
14
compared to 2011.
Thousands
12
10
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2 010 2 011 2 012
Figure 2.2.10
Number of outages affecting more than five customers
Figure 2.2.10 shows that since 2008 there
40
has been an improvement in the number of
35
outages affecting more than 5 customers.
30
25
In 2012 Multinet recorded 9 outages.
20
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Network Integrity
Figure 2.2.11
Replacement of low pressure gas mains with high pressure against target
Figure 2.2.11 shows that by 2012 Multinet
2012
2011
had achieved 63 per cent of its target to
2010
2009
2008
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
0
100
200
300
400
kilometers
Cumulative Actual
Cumulative Target
500
600
43
replace low pressure gas mains with high pressure gas mains.
Customer service
Multinet service performance improved in 2012 compared to the previous year, from one payment per 1 621
customers to one payment per 3 174 customers. The total number of payments declined by 55 per cent
from 413 in 2011 to 187 in 2012, totalling $28 831 ($2006) in GSL payments to customers.
Multinet has not made any payments for late appointments since 2009. Multinet also performed consistently
in relation to connection payments by only making one connection payment in 2009 and 2010 and none
since.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
44
2.3
SP AusNet
Figure 2.3.1
Comparison of forecast and actual gas distributed to tariff V customers
Figure 2.3.1 shows that for the 2008–12
40,000.0
35,000.0
access
30,000.0
SP AusNet
has
distributed more gas to tariff V residential
25,000.0
20,000.0
customers than forecast in each year
15,000.0
except for 2011. Overall cumulative gas
10,000.0
distributed since is 2.2 per cent more than
5,000.0
2004 2005 2006 2007
Figure 2.3.2
forecast for the period.
2008 2009 2010 2011 2012
Actual TJ Distributed - Tariff V
Forecast TJ Distributed - Tariff V
Actual Gas distributed to tariff D customers and maximum hourly quantity (MHQ)
42,000
12,000
41,000
40,000
39,000
T
J
G
J
tariff D customers and tariff D (MHQ) for
8,000
commercial and manufacturing customers
6,000
has decreased since 2004 by 11.4 per cent
4,000
and 9.8 per cent respectively.
36,000
35,000
34,000
Figure 2.3.2 shows that gas distributed to
10,000
38,000
37,000
arrangement
2,000
33,000
32,000
2004
2005
2006
2007
Actual TJ Distributed - Tariff D
2008
2009
2010
2011
2012
Actual GJ Distributed - Tariff D (MHQ)
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
45
Financial performance
Between 2008 and 2012 SP AusNet has earned a better return on assets than forecast of between 1.2 per
cent and 2.2 per cent (see Table 4.5.1).
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
46
Figure 2.3.3
Comparison of forecast and actual revenue
Overall
$200,000
$180,000
for
the
period
2008—2012
SP AusNet earned cumulative revenue of
$160,000
$140,000
1.9 per cent more than forecast. For each
$120,000
$100,000
year of the period, except 2011, actual
$80,000
revenue earned was more than forecast. In
$60,000
$40,000
2011 it was 0.7 per cent less than forecast
$20,000
$2004 2005 2006 2007
Actual revenue
Figure 2.3.4
for the year.
2008 2009 2010 2011 2012
Forecast revenue
Comparison of forecast and actual expenditure
Figure 2.3.4 shows SP AusNet's actual
$80,000
$70,000
opex and capex against forecast. It has
$60,000
consistently
$50,000
$40,000
underspent
on
opex.
SP AusNet commented that delivered cost
$30,000
efficiencies have offset the upward pressure
$20,000
on costs due to network growth and input
$10,000
$2004
2005
Actual capex
2006
2007
Actual opex
2008
2009
2010
Forecast capex
2011
2012
Forecast opex
price escalation. These savings have been
passed on to customers in the 2013-17 Gas
Access Arrangement. The overspend in capital expenditure in 2012 was due to the connection of more
customers than benchmark and 126.5km of Low Pressure to High Pressure mains replacement completed.
$350,000
Figure 2.3.5
$300,000
forecast capex
$250,000
Cumulative actual against
$200,000
Figure 2.3.5 shows SP AusNet's actual
$150,000
cumulative capex between 2008 and 2012
$100,000
$50,000
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
$-
2008
2009
Cummulative actual capex
2010
2011
2012
Cummulative forecast capex
47
compared to cumulative forecast capex. This shows that by the end of the period SP AusNet's cumulative
actual capex was only 2 per cent less than forecast.
Reliability of supply
Figure 2.3.6
Average minutes-off-supply per customer (SAIDI)
In terms of reliability of supply SP AusNet
Minutes
6
5
achieved the lowest unplanned average
4
minutes-off-supply per customer compared
to counterparts Envestra and Multinet.
3
2
1
Unplanned
Figure 2.3.7
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0
Planned
Average number of interruptions per customer (SAIFI)
SP
0.0250
average
number
of
interruptions per customer (SAIFI) for 2012
0.0200
Minutes
AusNet's
was relatively consistent with its 2011 level.
0.0150
0.0100
0.0050
Unplanned
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0.0000
Planned
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
48
Figure 2.3.8
Average interruption duration per customer (CAIDI)
Figure 2.3.8 shows SP AusNet's average
500
interruption duration (CAIDI) for those
450
Minutes
400
customers affected by supply interruptions.
350
300
250
20 0
150
100
50
Unplanned
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0
Planned
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
49
Figure 2.3.9
Number of outages affecting 5 customers or fewer
Figure 2.3.9 shows the number of outages
16
affecting 5 customers or fewer. In 2012 SP
14
AusNet's performance deteriorated by 18.6
Thousands
12
10
per
8
cent,
but
was
consistent
with
performance achieved in 2009 and 2010.
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2 010 2 011 2 012
Figure 2.3.10
Number of outages affecting more than 5 customers
Figure 2.3.10 shows the number of outages
40
affecting more than 5 customers. In 2012
35
SP AusNet recorded 16 fewer outages than
30
25
in 2011.
20
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Network Integrity
Figure 2.3.11
Replacement of low pressure gas mains with high pressure against target
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
50
Figure
2012
2.3.11
shows
SP
AusNet's
replacement of low pressure gas mains with
2011
high pressure against target. Overall SP
2010
2009
AusNet has achieved 95 per cent of its
2008
target to replace the low pressure network.
0
100
200
300
400
500
kilometers
Cumulative Actual
Cumulative Target
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
51
Customer service
In 2012, SP AusNet experienced one GSL payment per 2,960 customers and paid $20,817 ($2006) to
customers in GSL payments. This represents a decrease compared to 2011 where SP AusNet made one
GSL payment per 2,257 customers and paid $29,606 ($2006) to customers.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
52
3
Source of information and background information
This section covers the sources of information and other background material relevant to the preparation
and understanding of this report.
3.1
Sources of information
This comparative performance report is based on:
3.1.1

the regulatory accounting statements lodged by the DNSPs

information provided by the DNSPs on network performance and customer-service statistics

complaint information supplied by the Energy and Water Ombudsman (Victoria) (EWOV)

performance reports for the prior regulatory period 2003 – 2007 prepared by the ESCV

performance report for 2008 prepared by the AER
Accuracy of the financial information submitted by the distributors
The financial performance of distribution businesses is based on the regulatory accounting statements
submitted by the businesses under the ESCV’s Guideline 17.
The financial information submitted in accordance with the guideline is still subject to review. To ensure
timely publication of this report, financial information reported by the DNSPs under the guideline has been
used. It should not, however, be assumed that inclusion of the financial information of individual distribution
businesses in this report indicates the AER’s acceptance of this information for regulatory analysis
purposes.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
53
4
Financial performance
Victorian gas DNSPs were required to forecast revenue, operating expenditure and capital expenditure as
part of the Victorian GAAR 2008—2012.
The tariffs for regulated gas distribution services that can be charged by each DNSP during an access
arrangement period recognise a number of costs, which include:

the forecast (benchmark) expenditure associated with the delivery of the regulated distribution services

the forecast (benchmark) rate of return deemed necessary to attract investment capital to the regulated
distribution activities.
As part of the 2008 GAAR, the ESCV had in place an efficiency incentive framework which is intended to
encourage DNSPs to achieve ongoing efficiencies. Under the ESCV’s incentive framework, DNSPs who
perform better than the cost benchmarks are entitled to retain benefits for the access arrangement period,
whilst DNSPs who underperform face a cost penalty for the access arrangement period. Through the
efficiency incentive framework the ESCV sought to encourage DNSPs to share efficiency gains with
customers through lower prices in the long term. 8
4.1
Inflation adjustment
Consistent with the 2008 GAAR this report presents forecasts and actual results as the dollar value as at 1
July 2006.
4.2
Gas distributed
The quantity of gas distributed by each gas DNSP is primarily determined by the annual average
temperature and the number of customers connected to the distribution network. 9
The amount of gas
distributed—measured in joules—is an important consideration when assessing the financial performance of
each DNSP as this has a direct impact on the amount of revenue the business receives.
8
The AER has a similar approach, through the efficiency benefits sharing scheme.
9
Customer numbers are detailed in table A.1.1 in Appendix A1.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
54
This section reports on the levels of the gas being distributed according to the types of distribution tariff.
DNSPs currently charge two types of tariffs (known as Haulage Reference Tariffs):

Tariff V, which is a volume based tariff and applies to small customers (both residential and nonresidential).

Tariff D (including Tariff M), are demand based tariffs and apply to larger customers. Annual customer
charges are determined by the Maximum Hourly Quantity (MHQ) of gas delivered to the customer
during the calendar year. To qualify for a demand tariff a customer should be using either more than
10,000 Gigajoules of gas in a 12 month period or more than 10 Gigajoules in an hour10.
4.3
Tariff V
Table 4.3.1 shows the total gas distributed to tariff V customers by DNSPs over a nine year period. Overall
the quantity of gas distributed to Tariff V customers in 2012 was 1.4 per cent higher than forecast.
Table 4.3.1
Distributor
Envestra
Multinet
SP AusNet
All distributors
Source:
Gas distributed to Tariff V customers terajoules (TJ) 2004–2012
2004
2005
2006
2007
2008
2009
2010
2011
2012
32,000
30,100
33,400
31,000
34,000
34,000
35,000
34,300
36,257
45,900
42,500
47,300
41,800
45,800
45,000
46,000
45,100
46,839
31,500
29,200
33,300
30,900
34,600
34,100
36,000
34,700
36,694
109,400
101,800
114,000
103,700
114,400
113,100
117,000
114,100
119,789
DNSP annual regulatory accounting reports
The increase in gas distributed to tariff V customers over the access arrangement period were:

6.7 per cent for Envestra

6.2 per cent for SP AusNet, and
10
More details on gas haulage tariffs are set out in Appendix A.2.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
55

2.1 per cent for Multinet.
Envestra noted that the growth in tariff V over time was driven by growth in customer numbers of 10.9 per
cent, which was however offset by the decline in average consumption of 3.9 per cent over the period.
Customer number growth reflects general population growth, while the decline in average consumption
largely reflects warmer weather, improved appliance efficiency and changes in appliance preferences.
Multinet commented that the Tariff V volume variance is consistent with the growth in customers and
weather trends experienced throughout the regulatory period
SP AusNet noted that the growth in tariff V demand over time had steadily increased (in absolute terms)
driven by population growth, especially in the inner west growth corridors. However, per capita demand over
the same period had on average declined due a number of factors including increased housing and
appliance efficiency, and government efficiency policies.
SP AusNet further commented that gas volumes can materially vary year-to-year depending on weather
conditions and, therefore, caution should be used when comparing annual volumes. For example the large
difference between SP AusNet's 2007 and 2008 volumes in Table 4.3.1 is largely due to weather.
Overall since 2008, average consumption has decreased by 3 per cent across the DNSPs, with SP AusNet
experiencing the largest decrease of 5 per cent. Table 4.3.2 shows the average consumption per customer
(Tariff V).
Table 4.3.2
Envestra Vic
Multinet
Average consumption per customer on tariff V (gigajoules)
2008
2009
2010
2011
64
62
63
60
70
68
69
67
2012
62
69
SP AusNet
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
60
56
All distributors
Source:
64
61
62
58
66
64
65
62
64
DNSP annual regulatory accounting reports
Figure 4.3.1 details the variance (percentage difference) of each DNSP’s actual annual gas distributed to
Tariff V customers compared with the forecasts for the period.
Figure 4.3.1
Difference between Forecast and Actual TJ Distributed - Tariff V
5%
Variance
0%
-5%
Envestra Vic
Source:
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-15%
2004
-10%
SP AusNet
ESCV 2008-12 GAAR and DNSP annual regulatory accounting reports
In 2012 Envestra distributed 2.7 per cent less gas than forecast while both SP AusNet and Multinet
distributed 2.8 and 3.5 per cent respectively, more than forecast.
Table 4.3.3 shows the cumulative total gas being distributed to tariff V customers from 2008 to 2012
against the cumulative forecast to 2012. This shows that during the access arrangement actual gas
distributed was closely aligned (0.6 per cent) to the forecasts made for the period.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Table 4.3.3
Comparison of actual and forecast aggregate gas distributed to tariff V (TJ) forecast
for 2008–2012
Distributor
Aggregate total Forecast
Envestra
Multinet
SP AusNet
All DNSPs
179,212
223,971
172,326
575,509
173,492
229,433
176,061
578,986
-3.2
2.4
2.2
0.6
Tariff V 2008 -2012
Aggregate total Actual
Tariff V 2008- 12
Difference (per cent)
Source:
ESCV 2008-2012 GAAR and DNSPs annual regulatory accounting reports
Over the access arrangement period Envestra distributed 3.2 per cent less gas to tariff V customers than
forecast. On the other hand, Multinet and SP AusNet distributed 2.2 per cent and 2.4 per cent more than
anticipated, respectively. Envestra was consistently unable to meet the aggressive volume forecasts that
were set for the 2008-12 period. SP AusNet commented that stronger than forecast customer growth had
led to an increase in total gas distributed to tariff V customers relative to forecast. Colder weather conditions
in three out of the five years in the regulatory period also contributed to higher than forecast volume.
Multinet commented that the Tariff V volume variance is consistent with the growth in customers and
weather trends experienced throughout the regulatory period.
4.4
Tariff D
Tariff D is based on the maximum hourly quantity (MHQ) demanded rather than the volume of gas
distributed. For the 2008 GAAR, the ESCV did not request forecasts for Tariff D consumption. It is
therefore not possible to provide information regarding differences between the forecast and actual Tariff D
consumption.
Tables 4.4.1 and 4.4.2 shows that since 2004 gas distributed to tariff D and tariff D MHQ has decreased
across all gas businesses. In particular, compared to 2004 gas distributed to tariff D and tariff D MHQ
declined by 16.1 per cent and 13.6 per cent respectively.
Distributing gas to tariff D customers is not affected by changes in weather as commercial and industrial
customer demand is not as weather dependant. Since 2008 the quantity of gas distributed to tariff D
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
58
customers has been decreasing, and in 2012 it was 13.1 per cent less than in 2008. The total tariff D MHQ
has also decreased since 2008 and is now 4.6 per cent below 2008 levels. For the current access
arrangement period, Envestra experienced the largest decline in gas distributed to tariff D customers with
MHQ decreasing by 12.1 per cent.
Table 4.4.1
Distributor
Envestra
Multinet
SP AusNet
All distributors
Source:
2004
2005
2006
2007
2008
2009
2010
2011
2012
23,312
22,526
23,633
17,748
22,015
16,807
17,379
20,593
18,755
14,719
13,895
14,242
14,950
12,575
11,945
11,685
11,454
11,264
39,968
37,920
37,976
38,701
40,731
37,500
35,646
35,631
35,420
21,933
20,815
20,560
20,427
19,860
18,749
18,511
18,552
18,947
DNSP annual regulatory accounting reports.
Table 4.4.2
Distributor
Envestra
Multinet
SP AusNet
All distributors
Source:
Tariff D gas distributed 2004–2012 (Gigajoules)
Tariff D demand - maximum hourly quantity (MHQ) 2004–2012
2004
2005
2006
2007
2008
2009
2010
2011
2012
6,770
6,649
6,601
6,629
6,375
5,411
5,511
5,981
5,601
4,331
3,975
3,964
3,887
3,534
3,405
3,473
3,580
3,571
10,832
10,191
9,995
9,911
9,951
9,933
9,527
8,991
9,775
78,000
74,341
75,851
71,399
75,322
66,251
64,710
67,678
65,439
DNSP annual regulatory accounting reports.
Envestra commented that the decline in tariff D volume and MHQ reflects the ongoing structural change in
the Victorian economy, driven primarily by the relative decline of the manufacturing sector over time.
Multinet commented that Tariff D customer numbers peaked in 2007, and since then, both customer
numbers and usage/customer have decreased due to economic conditions in the industrial sector.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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SP AusNet commented that the decline in Tariff D gas distributed and demand is due to a number of
industrial and commercial consumers either closing down or relocating.
4.5
Return on assets
Return on assets is a measure of a business' overall financial performance. An increase in distribution
revenue or a reduction in operating and capital expenditure will drive up the return on assets compared to
businesses' original forecasts. The actual pre-tax return on assets has been compared with the pre-tax
returns on assets forecast in the 2008 GAAR. The pre-tax return on assets is calculated as revenue less
operating expenditure and depreciation divided by the average asset base.
Table 4.5.1 shows the pre-tax return on assets compared to forecast for each business over the gas access
arrangement period. It shows they all have had better returns than they forecast which may be due to a
number of factors. Envestra commented that the gas businesses concluded that the primary reason for this
result was the temporary curtailment of capex during the global financial crisis and changes in weather over
the 2008–12 period (which impacts revenue recovery).
SP AusNet commented that the increase in return on assets can be attributed to a reduction in operating
expenditure for 2012 compared to the value forecast and an increase in demand above what was forecast.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Table 4.5.1 Return on assets (per cent)
2008
2009
2010
2011
2012
Actual Return on Assets (Real pre-tax)
8.16
9.29
9.2
8.17
8. 19
Forecast Return on Assets (Real pre-tax)
7.42
7.46
7.21
7.00
6.81
Variance
0.73
1.83
1.99
1.17
1.4
Actual Return on Assets (Real pre-tax)
8.34
9.47
9.14
8.95
7.38
Forecast Return on Assets (Real pre-tax)
7.93
7.81
7.79
7.94
8.06
Variance
0.42
1.66
1.34
1.02
-0.68
Actual Return on Assets (Real pre-tax)
8.81
9.10
9.74
9.23
9.43
Forecast Return on Assets (Real pre-tax)
7.61
7.81
7.64
7.75
7.74
Variance
1.20
1.29
2.10
1.48
1.69
Envestra
Multinet
SP AusNet
Source:
4.6
ESCV 2008-12 GAAR and revisions to GAAR and DNSP annual regulatory accounting reports.
Revenue
Distributors' revenues are determined by the average customer consumption and total customers numbers.
Table 4.6.1 summarises the distribution revenue earned by each company during 2004 to 2012.11
Table 4.6.1 indicates that in 2012 the aggregate revenue earned by the industry was 4.3 per cent higher
than in 2011. Compared with 2011, Envestra’s revenue increased by 5.9 per cent, Multinet’s revenue
increased by 2.2 per cent and SP AusNet's revenue increased by 5.1 per cent.
11
Revenue figures include Ancillary Reference Services (ARS).
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Table 4.6.1
Distribution revenue 2004–2012 ($ million, real 2006)
Distributor
Envestra
Multinet
SP AusNet
All distributors
Source:
2004
2005
2006
2007
2008
2009
2010
2011
2012
124.8
120.2
125.5
118.3
133.9
140.9
144.7
144.2
152.7
155.3
149.3
154.4
146.8
155.8
158.4
157.1
157.7
161.0
146.2
138.7
148.4
143.3
161.7
168.0
172.7
169.9
178.6
426.3
408.2
428.3
408.3
451.4
467.3
474.5
471.8
492.3
DNSP annual regulatory accounting reports.
Since 2008 the aggregate revenue received by Victorian gas distributors was $2.36 billion or 0.8 per cent
higher than expected (refer to table 4.6.2).
Table 4.6.2
Aggregate total revenue and percentage difference between forecast and actual 2008–
2012 ($ million, real 2006)
Aggregate total Forecast Revenue
Envestra
Multinet
SP AusNet
Total
9731.1
786.9
835.0
2,353.0
716.4
804.8
850.8
2357.3
-2.8
2.3
1.9
0.2
2008-2012
Aggregate total Actual Revenue 20082012
Difference (per cent)
Source:
ESCV 2008-12 GAAR and DNSP annual regulatory accounting reports.
Figure 4.6.1 shows the variance in distribution revenue compared with the 2008–12 GAAR forecasts.
Multinet received more revenue than forecast. SP AusNet's actual revenue also exceeded forecast for each
year, except 2011, while Envestra under-recovered against forecasts for each year over the access
arrangement period.
Revenue variations were due to a number of factors. In the case of Envestra, the under-recovery of
revenue relative to forecast for each year of the access arrangement period is an outcome of actual
volumes delivered being consistently less than the forecast volumes.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Multinet commented that the revenue outperformance is consistent with higher volumes throughout the
period. SP AusNet commented that its revenue variance was closely aligned with the higher than forecast
volume delivered to customers. As already noted, SP AusNet's volumes exceeded forecast due to strong
customer growth and colder weather conditions in three out of the five years of the regulatory period.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Figure 4.6.1
Percentage difference between forecast and actual revenue including ancillary
reference services (ARS) from 2004–2012
10%
Variance
5%
0%
Envestra Vic
Source:
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-10%
2004
-5%
SP AusNet
ESCV 2008-12 GAAR and DNSP annual regulatory accounting reports
Figure 4.6.2 shows that network revenue per customer for each of the businesses. SP AusNet received
more revenue per customer than Envestra and Multinet. Overall network revenue per customer has
remained relatively stable over the period 2004 to 2012.
Figure 4.6.2
Network revenue per customer ($ million, real 2006)
$300
$250
$ per customer
$200
$150
$100
Envestra Vic
Source:
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
$0
2004
$50
SP AusNet
DNSP annual regulatory accounting reports.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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4.7
Distribution expenditure
There are two categories of expenditure that determine each distributor’s expenditure profile on regulated
distribution services—operating expenditure (opex) and capital expenditure (capex).
4.7.1
Operating expenditure
Operating expenditure includes costs associated with functions such as:

maintenance

network operations

billing and revenue collection

market development activities

customer connections

maintenance of meters

management and administration.
The GAAR established an annual opex forecast for each company for the years 2008 to 2012. Table 4.7.1.
summarise each distributor's actual opex over the period.
Table 4.7.1
Actual annual operating expenditure (in $million, real 2006)
2008
2009
2010
2011
2012
Envestra
45.1
45.2
45.6
48.8
53.1
Multinet
46.1
44.0
45.5
48.1
63.8
SP AusNet
38.5
38.5
34.3
37.3
43.6
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
65
All distributors
Source:
129.7
127.8
125.4
134.2
160.6
DNSP annual regulatory accounting reports
In 2012, industry level opex increased by 19.6 per cent from 2011. Envestra's and Multinet's actual opex
was 13.8 per cent and 57.5 per cent above forecast, respectively. In contrast, SP AusNet reported that
actual opex was 4.7 per cent below forecast.
Figure 4.7.1 shows the long term variance of each businesses total annual opex. It reveals that Multinet
have consistently spent more than GAAR forecasts since 2008, while SP AusNet has consistently spent
less.
Figure 4.7.1
Percentage difference between forecast and actual opex (including ancillary reference
services)
70%
60%
50%
40%
30%
variance
20%
10%
0%
-10%
Envestra Vic
Source:
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-30%
2004
-20%
SP AusNet
ESCV 2002 GAAR, 2008 GAAR and annual regulatory accounting reports.
Overall SP AusNet has underspent the access arrangement benchmarks. SP AusNet commented that total
opex has remained relatively flat since 2005, with delivery cost efficiencies offseting the upward pressure
on costs due to network growth and input price escalation (labour and materials).
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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Envestra and Multinet have both spent more than forecast by 4.4 and 21.1 per cent, respectively. Multinet
commented that the benchmarks set by the ESCV were too low to operate the network in a safe and
reliable manner. Accordingly the business undertook expenditure that it considered was necessary to safely
and reliably manage the network.
Envestra commented that the higher than benchmark opex reflect increases in:

Leak repair costs—due to the continued deterioration of old mains that needed to be repaired and
challenging environmental conditions, which triggered a significant increase in the number of water-inmains incidents, with a commensurate increase in restoration and repair costs; and

Regulatory obligations—expanding environmental control obligations and traffic management costs
driven by changes to State and Local Government laws, which have had a material impact on the cost
of maintenance activities over the period.
Table 4.7.2 shows the cumulative actual opex from 2008 to 2012 compared to the forecast for the same
period.
Table 4.7.2
Aggregate operating expenditure and percentage difference between forecast and
actual 2008–2012 ($ million, real 2006)
Aggregate total Forecast operating
Envestra
Multinet
SP AusNet
Total
227.76
204.47
220.57
652.79
237.77
247.58
192.25
677.67
4.4
21.1
-12.8
3.8
expenditure 2008– 2012
Aggregate total Actual operating
expenditure 2008– 2012
Difference (per cent)
Source:
DNSP annual accounting reports
Figure 4.7.2 shows that operating expenditure per customer increased for every business in 2012
compared to the prior year.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
67
Figure 4.7.2
Operating
Expenditure
per
customer,
including
ancillary
reference
services
($ million, real 2006)
$140.00
$120.00
$2006, per customer
$100.00
$80.00
$60.00
$40.00
Envestra Vic
Source:
4.7.2
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
$0.00
2004
$20.00
SP AusNet
DNSP annual accounting reports.
Capital expenditure
Capital expenditure (capex) includes costs associated with functions such as:

renewal of low pressure mains

growth-related network augmentation

new and replacement meters

other (including expenditure on information technology, and supervisory control and data acquisition
systems).
The capex reported by the distribution businesses only represents the portion that is financed by them. It
excludes the value of any assets paid for directly by customers—known as 'customer contributions'.
Tables 4.7.3 summarises each company's actual capex during 2008–2012. In 2012, net capital
expenditure increased by 18.6 per cent compared to a year earlier and was the highest amount spent by
the businesses during the access arrangement period. Nevertheless, this was still 15.9 per cent lower than
set benchmarks. Figure 4.7.3 shows the percentage differences between forecast and actual capex.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
68
Table 4.7.3
Actual net capital expenditure ($ million, real 2006)
2008
2009
2010
2011
2012
Envestra
46.3
38.6
47.4
61.5
85.3
Multinet
32.4
11.0
32.0
52.0
63.2
SP AusNet
59.5
60.3
61.0
68.6
65.2
138.3
109.9
140.5
182.1
213.8
All distributors
Source:
DNSP annual accounting reports.
Figure 4.7.3
Percentage difference between forecast and actual capital expenditure
50%
30%
10%
variance
-10%
-30%
-50%
Envestra Vic
MultiNet
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
2004
2012
2011
2010
2009
2008
2007
2006
2005
-90%
2004
-70%
SP AusNet
Source: ESCV 2002 GAAR and 2008-12 GAAR and DNSP annual accounting reports.
Envestra commented that the mains replacement program has significantly ramped up in the last two years
of the access arrangement as the difficulties arising from the global financial crisis have mostly passed.
Envestra is now replacing mains at rates far higher than it has ever done historically. Actual capex would
have been significantly higher than benchmark levels in 2012 had it not been for lower customer
connections relative to forecast levels.
Multinet commented that actual capital expenditure was affected because Multinet and capital markets were
unprepared for the ESCV's reduction in the equity beta from 1 to 0.8 in the 2008–12 access arrangement.
Multinet considered that the lower beta combined with the impact of the global financial crisis adversely
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
69
affected its ability to access capital markets and the true cost of funding. As a consequence, Multinet
argues, it had no choice but to defer a proportion of the pipework replacement program.
SP AusNet commented that the overspend in capital expenditure in 2012 was due to the connection of
more customers than the set benchmark and completion of 126.5km of Low Pressure to High Pressure
mains replacement.
Table 4.7.4 shows the total aggregate actual capex versus the total aggregate forecast capex from 2008 to
2012.
Table 4.7.4
Total capital expenditure (including ancillary reference services)
Total aggregate Capital Expenditure Forecast
Envestra
Multinet
SP AusNet
All DNSPs
381.8
228.3
320.3
930.4
279.3
190.6
314.7
782.8
-26.9
-16.5
-1.7
-15.9
2008 -2012
Total aggregate Capital Expenditure Actual
2008–2012
Difference in per cent
Source:
ESCV 2008-12 GAAR and DNSP annual regulatory accounting reports.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
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5
Reliability of supply
Reliability of supply is a measure of the level of availability of gas supply to customers. This section
provides the performance indicators for the average customer’s time off supply, interruption frequency,
number of outages on the supply network and major supply interruption events in 2012. Appendix A.3
defines the performance measures used for supply reliability.
On average, customers could expect to experience an unplanned gas outage once every 45 years as:

gas distributors prefer to carry out their works without causing supply interruptions to customers. This
avoids the time needed to completely drain a length of pipeline of its pressure, and the considerable
time to purge air out of gas pipes prior to reconnection. It also avoids the additional need for the gas
business staff or customers to purge the gas pipes inside customers’ premises and to re-ignite pilot
lights of gas appliances after supply interruptions.

gas pipes are predominantly buried underground and are generally not affected by bad weather.
In reviewing supply reliability, it is important to recognise that network reliability is best examined when
analysed as a trend over a long period of time. There can be significant short-term variations in reliability
measures that are not directly related to changes in the condition of the gas supply network.
Details of supply reliability are set out in tables A.3.1 to A.3.4 of appendix A.3. In terms of minutes-offsupply and frequency and duration of interruptions, the highlights are discussed in the following sections.
5.1
Average Minutes-off-supply per customer (SAIDI)
Figure 5.1.1 shows the performance of the three businesses. The average total minutes-off-supply in 2012
for all Victorian customers was 7.1 minutes,12 38.0 per cent more than in 2011.
12
SAIDI—system average interruption duration index— the total minutes, on average, that a customer could expect to be without
gas over a specific time period. Total SAIDI comprises both planned and unplanned minutes off supply. Calculated as the sum of
the duration of each customer interruption (in minutes), divided by the total number of connected customers averaged over the
specific period of time.
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In 2012, Envestra recorded the highest average total minutes-off-supply per customer at 10.32 minutes (an
increase of 46 per cent compared to 2011) followed by SP AusNet at 6.38 minutes (a decline of 43.6 per
cent). Multinet experienced the lowest minutes-off-supply at 2.5 minutes (a 42.1 per cent increase
compared to 2011). Envestra notes the significant increase in the mains renewal program is the reason for
the significant increase in planned SAIDI. This is also reflected in the total SAIDI.
Figure 5.1.1 also shows that in 2012 the level of average minutes-off-supply caused by unplanned outages
for Victorian customers declined by 12.6 per cent.
In 2012, average minutes-off-supply per customer caused by unplanned outages for Envestra fell to 3.48
minutes; for Multinet it declined by 12.7 per cent to 2.33 minutes; for SP AusNet the average minutes-offsupply decreased by 28.7 per cent, to 0.74 minutes. Historically, SP AusNet's average minutes-off-supply
per customer for unplanned outages have been the most stable and the lowest among the distributors.
Overall there was an increase in the industry average minutes-off-supply due to planned outages of 85.8
per cent in 2012 compared to a year earlier. In particular:

Envestra reported an increase of 107 per cent to 6.84 minutes

Multinet reported an increase of 83 per cent to 2.5 minutes and

SP AusNet reported an increase of 66 per cent to 5.64 minutes.
Envestra and SP AusNet both commented that the significant increase in the mains renewal program is the
reason for the increase in planned minutes-off-supply in 2012.
Figure 5.1.1
Average minutes-off-supply per customer (SAIDI)
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
72
12
Minutes
10
8
6
4
2
Multinet
Planned
Source:
5.2
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Envestra
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
SP AusNet
All distributors
Unplanned
DNSP quarterly KPI reports
Average number of interruptions per customer
Figure 5.2.1 shows that, on average, the total frequency of supply interruptions experienced by Victorian
gas customers in 2012 was 0.02813, up 6.0 per cent compared to 2011.
13
SAIFI— system average interruption frequency index—the number of occasions per year when each customer could, on
average, expect to experience an interruption. Calculated as the total number of customer interruptions, divided by the total
number of connected customers averaged over the specific period of time.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
73
Figure 5.2.1 Average numbers of interruptions per customer (SAIFI)
0.050
0.045
0.040
interruptions/customer
0.035
0.030
0.025
0.020
0.015
0.010
0.005
Envestra
Multinet
Planned
Source:
SP AusNet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.000
All distributors
Unplanned
DNSP quarterly KPI reports.
The 2012 results represent on average, one interruption every 36 years for Victorian customers. For
Envestra this is one interruption in 22 years, for Multinet this is one interruption in 75 years and for SP
AusNet this is one interruption in 38 years.
In 2012 all gas distributors experienced an increase in the number of planned interruptions with Envestra
reporting an increase of 127 per cent, Multinet 83 per cent and SP AusNet 21 per cent.
Envestra commented that outage key performance indicators reported since 2010 now include all supply
interruptions including reported supply faults, leaks and damages that cause loss of supply, unplanned
service renewals and repairs that require short duration supply interruptions. Previously only reported supply
faults, unplanned service renewals and service damages were included in outage KPI data. This explains
the increase in average numbers of interruptions per customer in 2010. Envestra also stated that significant
water related issues also contributed to higher SAIFI.14
14
Prior to 2010 Envestra reported the following for unplanned supply interruptions:
1.supply faults no gas reported by customers
2. Third party damages to gas service pipes.
3. Unplanned gas service pipe renewals.
Since 2010 the Envestra also includes the following for unplanned supply interruptions:
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
74
5.3
Average interruption duration (minutes per interruption) — Interruption
duration CAIDI
Figure 5.3.1 shows that the reported average duration of unplanned interruptions in 2012 was
138 minutes15, a 5 per cent improvement on the previous year. The average duration of unplanned
interruptions for Envestra decreased by 9 per cent to 129 minutes. For Multinet the increase was 20 per
cent to 334 minutes and for SP AusNet the decline was 20 per cent to 50 minutes.
Envestra commented that, although in this case the average duration of unplanned interruptions did fall,
unplanned interruptions are mostly due to circumstances outside of its control (e.g. third party damages,
heavy rains). Given this, unplanned interruptions can fluctuate quite significantly from year to year for
reasons not associated with actions of the distributor.
Figure 5.3.1
CAIDI (Average unplanned interruptions) 2003–2012
1. gas leaks causing supply loss (commences when leak is reported).
2. short (momentary) interruptions for unplanned maintenance (e.g. change of regulator) at consumers property.
This inclusion since 2010 significantly increases the number of supply interruptions reported (SAIFI). It also results in a
reduction to CAIDI as increased number and relative short duration of the additional supply interruptions significantly decreases
the average duration of supply interruptions (CAIDI).
15
CAIDI—customer average interruption duration index— the average time taken for supply to be restored to a customer when an
interruption has occurred. Calculated as the sum of the duration of each customer interruption (in minutes), divided by the total
number of customer interruptions (SAIDI divided by SAIFI)
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
75
400
350
minutes
300
250
200
150
100
50
Envestra
Source:
5.4
Multinet
SP AusNet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
All distributors
DNSP quarterly KPI reports.
Number of unplanned outages
Regulated businesses are required to report all unplanned gas outages, which are classified according to
whether they affect five or fewer customers, or more than five customers.
Figure 5.4.1 shows the number of outages affecting five customers or fewer for each entity since 2000:

There was an aggregate increase of 2 per cent in 2012 compared with the previous year, from 28,959
to 29,493.

For Envestra, the number of unplanned outages affecting less than five customers increased by 3 per
cent in 2012, from 14,230 to 14,589.

Multinet reduced the number of unplanned outages affecting less than five customers by 24 per cent
from 6,019 to 4,576.

SP AusNet suffered an increase in the number of unplanned outages affecting less than five customers
by 19 per cent, from 8,710 to 10,328.
Figure 5.4.1
Number of outages affecting five customers or fewer
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
76
30 000
No. of outages
25 000
20 000
15 000
10 000
5 000
Envestra
Source:
Multinet
SP Ausnet
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
0
All distributors
DNSP quarterly KPI reports
Figure 5.4.2 shows the number of outages affecting five or more customers, for each business since the
turn of the millennium. Compared to the outages that affect fewer than five customers, these incidents are
far less common, and greater percentage variation might be expected from year to year. Appendix A.3
provides further details of gas supply reliability.

Figure 5.4.2 shows that the total number of outages affecting more than five customers was 41 in
2012, an improvement of 34.9 per cent since 2011.

In 2012 Envestra’s total number of outages affecting 5 or more customers decreased by 17 per cent—
recording 15 outages—and is close to the average for the period since 2000 of 16.

Multinet also decreased the number of outages affecting more than 5 customers by 47 per cent—
recording 9 outages. The 2012 figure is the lowest for the 2000–2012 periods and is 47 per cent
below the average of 23 for the period since 2000.

SP AusNet decreased the number of outages affecting more than 5 customers by 49 per cent–
recording 17 outages. The 2012 figure is 21 per cent higher than the average for the period since
2000.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
77
Figure 5.4.2
Number of outages affecting more than five customers
90
80
No. of outages
70
60
50
40
30
20
10
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 010
2 011
2 012
0
Envestra
Source:
5.5
Multinet
SP Ausnet
All distributors
DNSP quarterly KPI reports
Significant supply interruption events in 2012
Envestra reported no outages affecting 100 or more consumers. The following supply interruptions were the
worst recorded in 2012:

11/11/12 - Barry St, Carlton, a block of 80 units for 3.3 hours due to water in service; and

13/08/12 - Martin St, Heidelberg, 50 houses for 5 hours - burst water main forcing water into gas
main.
SP AusNet reported no outages affecting 100 or more customers in 2012.
Multinet reported no outages affecting 100 or more customers in 2012.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
78
6
Network integrity
A critical aspect of gas supply safety is network integrity, which can be measured in terms of loss of
containment (leakages), third-party damage and replacement of aged assets. These measures may also
provide an indication of supply reliability. This report covers the assessment of network integrity in 2012
from a reliability perspective. Enquiries about gas safety should be directed to Energy Safe Victoria (ESV,
formerly the Office of Gas Safety).
The steady improvements in network integrity indicators in 2012 suggest that the businesses have adequate
asset management practices in place.
6.1
Loss of containment
The businesses are required to provide information on the number of priority A and B publicly reported leaks
repaired. This indicator is not intended to count the number of leak reports or telephone calls. The indicator
is based on the number of priority A and B publicly reported leak repair jobs completed during the month 16.
The industry is not required to report on outstanding publicly reported leaks because they must repair all
priority A and B leaks within 24 hours.
We note that the distributors also identify and repair smaller leaks by conducting leakage surveys. As the
approach used by each company differs, comparison between them is more difficult. Previously they
provided information to the ESCV on the total number of outstanding leaks from their leakage surveys
referred to as unrepaired leaks. That data is not required to be submitted to the AER. Information on
distributors' historical comparative performance in relation to unrepaired leaks is available in the ESCV’s
previous comparative performance reports.
On this basis, we cannot compare unrepaired leaks information. Instead the average number of repaired
gas leaks publically reported by each business during 2008–2011 has been summarised in Table 6.1.1
Table 6.1.1
16
Number of repaired gas leaks for 2008–2012
See appendix A.6 for a description of priority A and B gas escape jobs.
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79
Envestra
Multinet
SP AusNet
2008
8297
11,241
10,987
2009
10,249
11,275
12,655
2010
11,479
11,274
12,603
2011
11,707
10,401
9,898
2012
12,415
9,742
11,016
Source:
DNSP quarterly KPI reports.
Figure 6.1.1 indicates that in 2012, the total number of repaired gas leaks per kilometre increased by 3 per
cent from 2011. In particular:

The number of gas leaks reported and repaired by Multinet decreased by 4 per cent.

The number of gas leaks reported and repaired by SP AusNet increased by 9 per cent.

The number of gas leaks reported and repaired by Envestra increased by 3 per cent.
Figure 6.1.1
Repaired leaks per kilometre of gas pipe
1.40
1.20
Leaks per km
1.00
0.80
0.60
0.40
0.20
Envestra
Source:
SP AusNet
2012
2011
2010
2009
2008
2011
2012
2010
2009
2008
2011
Multinet
2012
2010
2009
2008
2011
2012
2010
2009
2008
0.00
All Distributors
DNSP quarterly KPI reports.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
80
6.2
Mechanical damage
The reporting of mechanical damage and service damage monitors the structural and functional integrity of
the distribution network. External damage to networks is a significant cause of gas escapes and customer
supply interruptions.
Figure 6.2.1 shows the number of incidents of mechanical damage to mains per kilometre. In 2012,
distributors reported 183 instances of damage to gas distribution mains, 17 fewer than in 2011,
approximately a 9 per cent reduction.17 This represents 0.00610 incidents per kilometre of distribution
pipelines18. In particular:

Envestra reported 59 incidents in 2012 or 18 per cent fewer incidents/kilometre compared to 2011

Multinet reported 55 incidents in 2012 or 10 per cent fewer incidents/kilometre compared to 2011 and

SP AusNet reported 69 in 2011 or 3 per cent more incidents/kilometre compared to 2011.
17
The number of damages to mains and services is derived by tallying the recorded mains damages and service damage jobs
completed during each month.
18
The overall very low rate of mains damages (0.00672 incidents per kilo meter) can be attributed to the effective Dial-BeforeYou-Dig process that is well established in Victoria.
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81
Figure 6.2.1
Mechanical damage to mains - number of incidents per kilometre of distribution mains
Damages per km
0.0160
0.0110
0.0060
Envestra
Multinet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.0010
SP AusNet
All distributors
-0.0040
Source:
6.3
DNSP quarterly KPI reports
Service connection damage
Figure 6.3.1 shows the damage to service connections for the 2003-2012 period. There were 2846
incidents of damage to customer service connections in 2012. This represents a decrease of approximately
141 incidents or a 5 per cent improvement since 2012. The 2012 figures indicate a decline relative to the
previously steady levels since 2004. In particular:

Envestra reported a 22 per cent reduction in incidents of damage to customer service connections in
2012 compared to 2011 from 911 incidents to 714 incidents

Multinet reported a 1 per cent increase in incidents of damage to customer service connections in 2012
compared to 2011 from 1017 incidents to 1025 incidents

SP AusNet reported a 5 per cent increase in incidents of damage to customer service connections in
2012 compared to 2011 from 1059 incidents to 1107 incidents.
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82
Figure 6.3.1
Service damage per customer 2003–2012
Damages per customer connection
3.5
2.5
1.5
-0.5
Source:
6.4
Envestra
Multinet
SP AusNet
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0.5
All distributors
DNSP quarterly KPI reports.
Low pressure network replacement
Another significant cause of gas escapes is chronic leakage from older, generally low pressure network
areas. For the current access arrangement period each business forecast its capital expenditure to replace
old low pressure cast iron pipe that is more prone to leakage. They also forecast how many kilometres of
pipeline they would replace each year. It is therefore important to monitor the progress of programmes to
replace older, leakier parts of the networks. The industry is required to report each month to the AER:

The length of low pressure gas mains decommissioned and replaced by high pressure gas mains (km)
and

The number of low pressure services replaced with high pressure services.
Figure 6.4.1 shows the cumulative number of low pressure kilometres of gas mains decommissioned and
replaced with high pressure pipeline for each distributor compared to targets set at the commencement of
the access arrangement period. This shows that all the businesses are below target. Specific details are set
out in Appendix A.3, table A.3.8. To date for the target to 2012, SP AusNet has replaced 95 per cent,
Multinet has replaced 63 per cent and Envestra has replaced 63 per cent of their respective targets (refer
to Figures 6.4.1, 6.4.2, 6.4.3 and 6.4.4).
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Victorian Gas Distribution business performance comparative report 2012 | Performance Report
84
Figure 6.4.1
Replacement of low pressure gas mains with high pressure against target 2008–2012
SP AusNet
Multinet
Envestra
0%
20%
40%
Actual
Figure 6.4.2
60%
80%
100%
Target
Envestra—Replacement of low pressure gas mains with high pressure against target
2008–12
2012
2011
2010
2009
2008
0
100
200
300
kilometers
Cumulative Actual
400
500
600
Cumulative Target
Envestra commented that in response to the global financial crisis the mains replacement program was
temporarily curtailed mid regulatory period. The program has since been ramped up, with mains
replacement occurring at rates higher than at any other time in the past.
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Victorian Gas Distribution business performance comparative report 2012 | Performance Report
86
Figure 6.4.3
Multinet - Replacement of low pressure gas mains with high pressure against target
2012
2011
2010
2009
2008
0
100
200
300
400
500
600
kilometers
Cumulative Actual
Figure 6.4.4
Cumulative Target
SP AusNet - Replacement of low pressure gas mains with high pressure against target
2012
2011
2010
2009
2008
0
100
200
300
400
500
kilometers
Cumulative Actual
Cumulative Target
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
87
7
Customer Service
The levels of customer service achieved by the distributors are measured in terms of their performance in
responding to customer calls about serious incidents, meeting customers’ appointments on time, making
supply connections and maintaining supply reliability above the minimum reliability level. Customer service
is also measured in terms of the proportion of complaints received by the businesses, and received for full
investigation by the Energy and Water Ombudsman (Victoria) (EWOV).
7.1
Response to customer calls
Distributors reported on their response times to customer calls about serious incidents. The response time is
defined as the time elapsed from when a report classified as a 'priority A gas leak incident' is received by
the business, to the time taken for a company representative to arrive on site.19 The following targets have
been established:

metropolitan business hours (7 am to 7 pm weekdays)—95 per cent within 60 minutes

metropolitan after hours—90 per cent within 60 minutes

country all hours—90 per cent within 60 minutes.
Table 7.1.1 summarises the response to customer calls.
Table 7.1.1
Response to customer calls- Percentage of response meeting target for 2012 (per
cent)
DNSP
Metro Calls
Envestra
19
Country calls
Business Hours
After Hours
(target: 95 per cent)
(target: 90 per cent)
(target: 90 per cent)
90
86
98
A description of Priority A gas leak incidents is contained in appendix A.5 of this report.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
88
Multinet
SP AusNet
Notes:
a
97a
NA a
NA b
99
99
99
Multinet does not differentiate between business hours and after hours. Multinet instead targets a 95 per cent
response rate for all hours.
b
Multinet does not have country customers. Rounded off to the nearest whole number.
While Multinet and SP AusNet were able to achieve above the response to customer call targets, Envestra
fell below the target for responding to customer calls during business and after hours.
Envestra and SP AusNet were both able to achieve above targets for responding to country customer calls.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
89
7.2
Guaranteed Service Level payments
As part of the 2008 GAAR the ESCV required business to operate under the Guaranteed Service Level
payment scheme. The scheme's main objective is to encourage distributors to improve service and reliability
levels to the worst served customers. The scheme also addresses areas of service that customers regard
as important and contains triggers and payment levels that provide an incentive for distributors to increase
performance. These include repeat interruptions, lengthy interruptions, meeting appointments and
connections. A distributor will be required to make payments to customers in the following instances:

failure to attend an appointment within an agreed appointment window

failure to connect a customer within one day of the agreed date

unplanned interruptions to a customer in a calendar year period resulting from faults in the distribution
system, and

lengthy interruptions of gas supply to a residential customer not restored within 18 hours.
In the 2008 GAAR, the ESCV made amendments to improve the scheme. These included extending the
new GSL scheme to apply to all Tariff V customers (residential and non-residential) instead of just
residential tariff V customers. Tariff D customers are now also covered by GSLs. The new GSL scheme
also has tighter timeframes for appointments and connections. The financial penalty for repeat and lengthy
interruptions was also increased. Details of the GSL scheme and payments made of the payments are set
out in appendix A.4.
However, a consequence of these amendments is that historical data prior to 2009 is no longer comparable
with more recent years. Accordingly, this report discusses only GSL payments from 2009.
Table 7.2.1 shows that the distributors made a total of 975 payments in 2012 totalling $131,602 (in $2006
for comparative purposes). This represents a decrease of 25 per cent from a year earlier. It also represents
a 26 per cent decline in the value of total GSL payments compared to 2011.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
90
Table 7.2.1
Total GSL payments made to customers 2009– 2012 ($2006)
2009
2010
2011
2012
Envestra
57,921
83,018
94,255
81,954
Multinet
12,901
53,490
54,188
28,831
SP AusNet
25,650
24,735
29,601
20,817
All DNSPs
96,472
161,243
178,044
131,602
Source:
DNSP quarterly KPI reports.
On average for 2012, one GSL payment per 1,523 customers was made, which indicates a significant
increase in GSL payments from 2009 which were one payment for every 2,532 customers. In particular:

SP AusNet experienced one GSL payment per 2,960 customers in 2012. This represents a decrease
in performance compared to 2009, where one GSL payment was made per 2,367 customers.

Envestra experienced one GSL payment per 1,004 customers in 2012. This is a decrease in
performance since 2009 when there was one payment per 1,300 customers.

Multinet experienced an increase in performance in 2012 compared to 2011 from one payment per
1,621 customers to one payment per 3,584 customers.
Figure 7.1.1 displays the total number of GSL payments made by each company since 2009.

Envestra reported a decline in the number and amount of GSL payments for repeat interruptions (as a
result of more than 5 unplanned interruptions) and lengthy interruptions in 2012 compared to 2011.

Envestra also made no payments as a result of 10 interruptions within a calendar year.

Multinet has continued its trend of not making any payments for late appointments since 2009. It has
performed consistently also in relation to connection payments, with none made in 2012 while only
making one payment from 2009–2011.
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
91
However, Multinet's performance for repeat interruptions and lengthy interruptions has deteriorated

significantly between 2009 and 2012, from 38 to 69 for more than 5 unplanned interruptions, from 84
to 67 for interruptions lasting greater than 12 hours but less than 18 hours and from 175 to 43 for
interruptions lasting greater than 18 hours.
SP AusNet experienced a significant increase in payments in relation to the number of GSL payments

made to tariff V customers as a result of interruptions lasting longer than 12 hours but less than 18
hours. The increase was from 6 in 2009 to 17 in 2012. However, this is still considerably lower than
Envestra (126 payments in 2012 and 95 in 2009) and Multinet (67 payments in 2011 and 42 in
2009).
Figure 7.1.1
Total GSL payments in $'000 paid by DNSPs to customers ($' 2006)
200
180
160
140
$'000
120
100
80
60
40
20
-
2009 2010 2011 2012
2009 2010 2011 2012
Envestra
Source:
Multinet
2009 2010 2011 2012
SP Ausnet
2009 2010 2011 2012
All distributors
DNSP quarterly KPI reports.
Most of the GSL payments were made for repeat and lengthy interruptions. The most significant being
payments made to tariff V customers as a result of interruptions lasting longer than 18 hours. The total
payment in 2012 for this service was $43,121 (refer to Figure 7.1.2). This represents a 32 per cent decline
in payments made compared to 2011 (or 50 per cent compared to 2009). Of these payments Envestra
made 128 in 2012 compared to 95 in 2009, and Multinet made 43 in 2012 compared to 19 in 2009. SP
AusNet made 6 payments in 2012 compared to 4 in 2009.
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92
Envestra commented that the high incidence of water in mains, due to heavy rainfall in recent years, has
contributed to numerous GSL payments for lengthy interruptions.
Multinet also commented that significant rainfall experienced in the period under review resulted in an
increase in planned supply interruptions; primarily as a result of water ingress to the low pressure portion of
the Multinet network.
Figure 7.1.2
GSL payments paid by DNSPs to customers for lengthy interruptions > 18 hours ($'
2006)
70.00
60.00
50.00
$'000
40.00
30.00
20.00
10.00
-
2009 2010 2011 2012
2009 2010 2011 2012
Envestra
Source:
Multinet
2009 2010 2011 2012
SP Ausnet
2009 2010 2011 2012
All distributors
DNSP quarterly KPI reports.
In contrast to the increase in payments made for repeat and lengthy interruptions the best performing
service was for meeting appointment time frames. In 2009 and again in 2012 there were no payments
made for appointments not met within in 2 hours of scheduled time where the customer was present. In
2010 SP AusNet was the only entity to make a payment for an appointment not met within 2 hours of
scheduled time with the customer present.
The payments made for appointments not met by the agreed date where the customer was not present
increased slightly in 2012. Envestra's service declined by 10 per cent in that year while
SP AusNet’s payments decreased from 46 in 2009 to 34 in 2012 (a decrease of 26 per cent). Multinet
was the only organisation not to make a payment for appointments not met by the agreed date where the
customer was not present.
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Since 2009 the total number of GSL payments made to customers for connection delays has declined by 3
per cent from 246 in 2009 to 238 in 2012. The total payments are shown in Figure 7.1.3.
SP AusNet decreased from 137 payments made in 2009 to 101 in 2012. Multinet made one payment in
2009 and made no payments from 2010. Envestra's number of payments increased (from 103 in 2009 to
137 in 2012).
Figure 7.1.3
Total GSL payments paid by DNSPs to customers for connection delays
($' 2006)
35
30
25
$'000
20
15
10
5
2009 2010 2011 2012
2009 2010 2011 2012
Envestra
Source:
7.3
Multinet
2009 2010 2011 2012
SP Ausnet
2009 2010 2011 2012
All distributors
DNSP quarterly KPI reports.
Complaints
Customer complaints to distributors
Figures 7.3.1 to 7.3.3 show that the level of complaints recorded by all the businesses. In particular:

Envestra's complaints for connection and augmentation declined by 27 per cent and 19 per cent
respectively. Other complaints increased by 8.8 per cent. Envestra commented the incidence of water
in mains following heavy rainfall, and the increased field activity associated with higher levels of mains
replacement, has contributed to the level of complaints in the other category.

Multinet's complaints for quality and other declined by 52 per cent and 23 per cent respectively.
Connection and augmentations complaints increased by 8.8 per cent. Multinet commented the increase
Victorian Gas Distribution business performance comparative report 2012 | Performance Report
94
in this category was associated with the time expired meter program. More than 65,000 meters (a
much higher work-volume than previous years) were replaced with the major issues being notification
prior to, and relights following, the changeover. Although Multinet routinely notifies customers of these
works, they found that the householder does not always realise this has occurred. The decline in quality
complaints was driven by the completion of a number of network augmentation projects targeting the
worst performing areas.

SP AusNet's complaints for connection, augmentation and other all increased by 1.3 per cent, 0.1 per
cent and 230 per cent respectively. SP AusNet commented that although an increase has been noted
in 2012, the number of 'other' complaints (0.32 complaints per 1000 customers) remains relatively
low.
Appendix A.3 table A.3.7 sets out the number of complaints per thousand customers for each company.
Figure 7.3.1
Connection and Augmentation - number of complaints per 1000 customers
1.40
1.20
complaints per 1000 customers
1.00
0.80
0.60
0.40
0.20
Envestra
Source:
Multinet
2011
2012
2010
2009
2007
2008
2005
2006
2004
2011
2012
2010
2009
2007
2008
2005
2006
2004
2011
2012
2010
2009
2007
2008
2005
2006
2004
0.00
SP AusNet
DNSPs quarterly KPI reports.
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Figure 7.3.2
Quality - number of complaints per 1000 customers
0.90
0.80
complaints per 1000 customers
0.70
0.60
0.50
0.40
0.30
0.20
0.10
Envestra
Source:
2011
2012
2010
2009
2007
Multinet
2008
2005
2006
2004
2011
2012
2010
2009
2007
2008
2005
2006
2004
2011
2012
2010
2009
2007
2008
2005
2006
2004
0.00
SP AusNet
DNSPs quarterly KPI reports.
Figure 7.3.3
Other complaints - number of complaints per 1000 customers
2.00
1.80
complaints per 1000 customers
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
Envestra
Source:
Multinet
2012
2011
2010
2009
2007
2008
2006
2005
2004
2012
2011
2010
2009
2007
2008
2006
2005
2004
2012
2011
2010
2009
2007
2008
2005
2006
2004
0.00
SP AusNet
DNSPs quarterly KPI reports.
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Complaints to the Energy and Water Ombudsman Victoria
Figure 7.3.4 shows the number of complaints about gas distribution received from EWOV for full
investigations for the following: quality and reliability; connection and augmentation; and other 20 .
The number of complaints received by EWOV for full investigation in 2008 declined from 91 to 34
complaints in 2012 compared to the previous calendar year. Complaints relating to Envestra declined by 59
per cent (from 22 to 9). Complaints for Multinet declined by 61 per cent from 49 to 19; and for SP AusNet
by 70 per cent, from 20 to 6. The majority of complaints received by EWOV were about Multinet (56 per
cent), followed by Envestra (26 per cent) and SP AusNet (18 per cent).
In 2012 most of the complaints received by EWOV were for quality and reliability (44 per cent), followed by
connection and augmentation (29 per cent).
20
Explanatory note:
EWOV defines a complaint as an expression of dissatisfaction regarding a policy, practice or customer service performance
of an energy or water provider that is a participant in the EWOV scheme, where a response or resolution is explicitly or
implicitly expected.
The material above shows only ‘complaints received for full investigation’. EWOV’s normal process is to fully investigate
complaints that remain unresolved following two or more contacts between the customer and the provider.
In addition to ‘complaints received for full investigation’, the two other types of complaint are:
1. Un assisted referrals: if a customer has not yet spoken with the energy or water provider about their complaint, EWOV
generally refers them back to the provider's call centre, or to a more relevant agency.
2. Assisted referrals: If the customer has spoken once with someone at the provider's call centre about their complaint but
it remains unresolved, EWOV usually refers them to a higher-level contact at the provider.
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Figure 7.3.4
Complaints received by EWOV for full investigation for connection, quality and other,
2004–2012
45
40
Number of complaints
35
30
25
20
15
10
5
Envestra
Multinet
SP AusNet
connections
quality
2011
2012
2010
2009
2007
2008
2005
2006
2004
2011
2012
2010
2009
2007
2008
2005
2006
2004
2011
2012
2010
2009
2007
2008
2005
2006
2004
2011
2012
2010
2009
2007
2008
2005
2006
2004
0
All DNSPs
other
Source: Energy and Water Ombudsman Victoria.
Figure 7.3.5 shows the total number of complaints received by EWOV for full investigation from 2004 to
2012.
Fig 7.3.5
Complaints received by EWOV for full investigation
60
Number of complaints
50
40
30
20
10
0
2004
2005
2006
2007
Envestra
Source:
2008
Multinet
2009
2010
2011
2012
SP AusNet
Energy and Water Ombudsman Victoria
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A
APPENDICES
A.1
Network Characteristics
Table A.1.1
Number of customers (domestic and non-domestic) for 2012
Domestic21
Non-domestic22
Total
Envestra
564 645
23 268
587 913
Multinet
646 880
23 300
670 180
SP AusNet
600 132
16 192
616 324
All DNSPs
1 811 657
62 760
1 874 417
Source:
DNSPs' quarterly reports.
Table A.1.2 Network composition for 2012
Customers per km of distribution
Transmission mains (km)
Distribution mains (km)
Envestra
331
10 251
57.4
Multinet
157
9 853
68.1
SP AusNet
182
10 041
61.4
All
670
30 145
62.2
DNSP
Source:
mains
DNSPs' quarterly reports.
Gas transmission pipelines have a MAOP of more than 1,050 kPa and gas distribution pipelines have a
MAOP of less than or equal to 1,050 kPa. The total length of transmission pipeline is only about 2 per cent
21
Domestic customers are all customers that are subject to the domestic tariffs (Tariff V).
22
Non-domestic customers are all customers that are subject to the tariffs other than domestic tariffs reported in the following
categories: remainder of tariff V supply points not included as "domestic"; or Tariff D or Tariff M supply points.
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of the Victorian gas distributors' total pipeline length. Figure A.1.1 shows the composition of gas pipelines for
each of the Victorian distributors, and Figure A.1.2 shows the Victorian gas distribution network by material.
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Figure A.1.1
Network composition Victorian Gas 2012
331
77
9150
Envestra
1024
157
940
6377
Multinet
2536
182
756 1140
8145
SP AusNet
670
1773
4700
23672
All DBs
0
5000
10000
Transmission
15000
20000
25000
High Pressure
Medium Pressure
30000
kilometres
35000
Low Pressure
Source: DNSP regulatory quarterly reports.
Figure A.1.2
Victorian Gas distribution network by material 2012
6324
Envestra
4002
3300
Multinet
2499
16494
8682
All DBs
696
422
6
490 508 376
1
2416
1684 863
7
kilometres
0%
Polyethylene
Source:
0
1427
6168
SP AusNet
499 48065
2883
10%
20%
Protected Steel
30%
40%
50%
Cast Iron (and variations)
60%
70%
PVC
80%
90%
Unprotected Steel
100%
Other
DNSP regulatory quarterly reports.
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A.2
Gas haulage tariffs
DNSPs currently charge two types of Haulage Reference Tariffs (tariffs)—Volume Tariff V and demand
Tariff D (including Tariff M).
Tariff V is applicable to customers using less than 10 terajoules (TJ)23 per year. Such customers are
typically residential and small commercial users. The tariff includes a fixed charge and a variable
component.24 Different tariffs are charged across geographic zones—Envestra maintains four pricing zones
(Central, North, Murray Valley and Bairnsdale); SP AusNet, four (Central, West, Central New and West
New) and Multinet, a single metropolitan zone and two regional zones (South Gippsland and Yarra Valley).
Charges also vary according to customer categories—classified as residential and non-residential. Envestra
applies the same tariff, while Multinet and SP AusNet charge different Tariff V rates to residential and nonresidential customers. Envestra’s and SP AusNet’s Tariff V structures include tariff ‘bands’ for peak and offpeak periods. Multinet applies a greater number of tariff bands, including a shoulder period. 25
SP AusNet also has a Tariff M which applies to existing Tariff V customers that exceed the Tariff V
consumption limits of 10 TJ in any 12 month period, or the maximum hourly quantity (MHQ) limit of 10
gigajoules in any hour (1 gigajoule, GJ = 109 joules).
Tariff D applies to customers using more than 10 TJ per year. It is based on the MHQ of gas consumed.
These customers are typically large industrial users such as bakeries and large manufacturing plants. Tariff
D does not incorporate a fixed charge. As Tariff D is based on the MHQ, charges are generally common
across each distributor's area.26 Tariff D structures vary across each of the businesses.
23
One TJ = 1012 joules (J), or 1000 GJ.
24
Under the 2008–12 Access Arrangements, the Reference Service for Tariff V customers comprises gas haulage, connection to
the gas system and provision of a gas meter.
25
The shoulder period applies to May and October and, according to Multinet, is designed to account for usage in these months
that is more reflective of the peak period than the off-peak period.
26
Envestra applies higher charges in its Murray Valley zone.
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A.3
Performance measures for reliability of supply
Reliability is primarily measured in terms of the average frequency and duration of supply interruptions. Gas
supply interruptions can be either planned or unplanned. Planned interruptions occur when a distribution
company needs to disconnect supply to undertake maintenance or construction work. It is required to give
customers at least 10 business days’ notice of planned interruptions.
Unplanned interruptions occur mainly due to leakages or damaged pipes requiring immediate repair. These
outages are often caused by third parties damaging pipes and by water entering low-pressure pipes.
The key reliability measures used to analyse the performance of distributor in Victoria are:

Minutes-off-supply—the performance indicator for customer minutes-off-supply is called System
Average Interruption Duration Index (SAIDI). It measures the total minutes, on average, that a
customer could expect to be without gas over the reporting period. Total SAIDI comprises both planned
and unplanned minutes-off-supply.

Interruption frequency—the performance indicator for interruption frequency is called System Average
Interruption Frequency Index (SAIFI). It measures the number of occasions per year when each
customer could, on average, expect to experience an interruption. It is calculated as the total number of
customer interruptions, divided by the total number of connected customers averaged over the reporting
period.

Interruption duration—the performance indicator for interruption duration is called Customer Average
Interruption Duration Index (CAIDI). It measures the average time taken for supply to be restored to a
customer when an interruption has occurred. It is calculated as the sum of the duration of each
customer interruption (in minutes), divided by the total number of customer interruptions (SAIDI divided
by SAIFI). Unplanned CAIDI is the average time taken by the distribution company to find and repair
faults on the network.

Numbers of unplanned outages—the numbers of outages in the reporting period resulting in customers
experiencing an unplanned gas supply interruption. Note that the performance indicator for the number
of outages does not take account of variations between distributors in the size of their gas networks or
the number of customers supplied.
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Gas supply reliability
Table A.3.1
Envestra
2008
2009
2010
2011
2012
Planned
3.63
0.94
1.45
3.31
6.84
Unplanned
1.84
1.72
3.43
3.77
3.48
Total
5.48
2.66
4.88
7.08
10.32
Planned
0.010
0.003
0.004
0.009
0.019
Unplanned
0.008
0.007
0.027
0.026
0.027
Total
0.018
0.009
0.031
0.036
0.046
Planned
360
360
360
360
360
Unplanned
236
260
249
142
129
133
75
83
72
59
0.014
0.008
0.008
0.007
0.006
994
975
884
911
714
0.002
0.002
0.002
0.002
0.001
Average minutes-off-supply per customer (SAIDI)
Average number of interruptions per customer (SAIFI)
Average interruption duration (CAIDI)
Mechanical damage – gas mains
Number of incidents
Damage per km
Mechanical damage – service connections
Number of incidents
Damage per customer
Notes:
Since 2010 all supply interruptions (other than planned meter changes) are now included in supply reliability measures.
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Table A.3.2
Multinet
2008
2009
2010
2011
2012
Average minutes-off-supply per customer (SAIDI)
Planned
1.83
1.68
2.68
1.36
2.5
Unplanned
1.49
2.07
2.45
2.67
2.3
Total
3.33
3.74
5.13
4.03
4.8
Average number of interruptions per customer (SAIFI)
Planned
0.005
0.005
0.007
0.004
0.007
Unplanned
0.007
0.006
0.010
0.010
0.007
Total
0.012
0.011
0.017
0.013
0.014
360
360
360
360
360
211
323
126
279
334
39
62
75
61
55
0.004
0.006
0.008
0.006
0.006
1240
1223
1116
1017
1025
0.002
0.002
0.002
0.002
0.002
Average interruption duration (CAIDI)
Planned
Unplanned
Mechanical damage – gas mains
Number of incidents
Damage per km
Mechanical damage – service connections
Number of incidents
Damage per customer
Notes:
1
Multinet cannot specify the causes for unplanned interruptions affecting one customer.
2
Multinet assumes six hours for each planned interruption.
3
Multinet assumes four hours for each unplanned single premise interruption.
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Table A.3.3
SP AusNet
2008
2009
2010
2011
2012
Average minutes-off-supply per customer (SAIDI)
Planned
3.88
2.84
3.63
3.41
5.64
Unplanned
0.81
0.85
1.16
1.03
0.74
Total
4.68
3.69
4.79
4.44
6.38
Average number of interruptions per customer (SAIFI)
Planned
0.010
0.008
0.010
0.010
0.012
Unplanned
0.018
0.020
0.021
0.017
0.015
Total
0.028
0.028
0.031
0.026
0.027
391
348
363
345
474
44
43
55
62
50
103
80
86
67
69
0.011
0.008
0.009
0.005
0.007
1314
1368
1242
1059
1107
0.002
0.002
0.002
0.001
0.002
Average interruption duration (CAIDI)
Planned
Unplanned
Mechanical damage – gas mains
Number of incidents
Damage per km
Mechanical damage – service connections
Number of incidents
Damage per customer
Source:
DNSP quarterly report
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Table A.3.4
All distributors
2008
2009
2010
2011
2012
Average minutes-off-supply per customer (SAIDI)
Planned
3.03
1.82
2.60
2.63
4.89
Unplanned
1.38
1.58
2.34
2.48
2.17
Total
4.41
3.39
4.95
5.11
7.06
0.008
0.005
0.007
0.007
0.012
Unplanned
0.011
0.011
0.019
0.017
0.016
Total
0.019
0.016
0.026
0.025
0.028
Average number of interruptions per customer (SAIFI)
Planned
Average interruption duration (CAIDI)
Planned
372
354
361
354
396
Unplanned
127
146
124
145
138
275
217
244
200
183
0.010
0.007
0.008
0.007
0.006
3,548
3,566
3,242
2,987
2,846
0.006
0.006
0.005
0.005
0.005
Mechanical damage – gas mains
Number of
incidents
Damage per km
Mechanical damage – service connections
Number of
incidents
Damage per
customer
Notes:
1
Multinet cannot specify the causes for unplanned interruptions affecting one customer.
2
Multinet assumes six hours for each planned interruption.
Table A.3.5
Number of outages affecting fewer than five customers
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2008
2009
2010
2011
2012
Envestra
3648
3210
12,843
14,230
14,589
Multinet
4332
3941
6325
6019
4,576
SP AusNet
9192
10,181
11,161
8710
10,328
17,172
17,332
30,329
28,959
29,493
All distributors
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Table A.3.6
Number of outages affecting five or more customers
2008
2009
2010
2011
2012
Envestra
14
12
26
18
15
Multinet
16
13
18
12
9
SP AusNet
20
26
32
33
17
All distributors
50
51
76
63
41
Table A.3.7
Number of complaints per 1000 customers
Connection and augmentation
Quality and reliability of supply
Other complaints
'09
'10
'11
'12
'09
'10
'11
'12
'09
'10
'11
'12
Envestra
0.13
0.12
0.19
0.14
0.24
0.18
0.79
0.64
0.62
0.58
0.70
0.76
Multinet
0.21
0.14
0.45
1.24
0.20
0.73
0.85
0.40
0.87
1.33
0.61
0.47
SP AusNet
0.41
0.29
0.28
0.29
0.15
0.10
0.06
0.06
0.18
0.19
0.10
0.32
All DNSPs
0.25
0.18
0.32
0.58
0.20
0.36
0.57
0.36
0.57
0.73
0.47
0.51
Table A.3.8
Kilometres of low pressure gas mains replaced with high pressure
Envestra
Multinet
SP AusNet
Target
Actual
Target
Actual
Target
Actual
2008
90
45
108
46
90
77
2009
100
13
111
47
90
66
2010
110
45
112
155
90
83
2011
120
117
112
36
90
73
2012
150
137
114
65
90
127
Cumulative Total
570
357
557
349
450
426
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Percentage of final target
Source:
63
63
95
ESCV Gas Access Arrangement 2008–2012 and DNSP quarterly KPI Reports.
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A.4
Guaranteed Service Levels
Table A.4.1
Guaranteed Service Level (GSL) payment threshold items
Area of service
Level of service to incur GSL payment a
Level of GSL payment
Failure to attend appointment within agreed appointment window:
Appointments b
Customer present–2 hours
$50 per event
Customer absent–agreed date
Connections
Failure to connect a customer within one day of agreed date
$80 per day (subject to a
maximum of $240)
Unplanned interruptions to a customer in a calendar year period resulting from
faults in the distribution system:
Repeat
interruptions c
$150
Upon tenth interruption
Additional $150
Gas supply interruption to a residential customer not restored:
Lengthy
interruptions d
Notes:
Upon fifth interruption
Within 12 hours
$150 per event
Within 18 hours
Additional $150
a. An appointment window of two hours applies if the customer is required or requests to be present. A one day
appointment window applies if the customer is not required or does not request to be present. Appointments rescheduled
by the distributors are counted as missed appointments. Appointments rescheduled by the customer are excluded from
payments.
b. Excluding force majeure, faults in gas installations, transmission faults, upstream events and third party events.
c. Excluding force majeure, faults in gas installations, transmission faults, upstream events and third party events impacting
large diameter mains affecting more than 50 customers. Large diameter mains are high pressure mains of nominal
diameter 100 mm or greater, and medium pressure or low pressure mains of nominal diameter 150 mm or greater.
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Table A.4.2
Guaranteed Service Level payments made ($2006)
No. of customer payments
2009
2010
Amount paid
2011
2012
2009
2010
2011
2012
Repeat Interruptions - No. of GSL payments to tariff V customers as a result of more than 5 unplanned interruptions within a
calendar year
Envestra
15
108
94
91
2,024
14,404
12,186
11,407
Multinet
38
122
135
69
4,318
16,271
17,501
8,649
SP AusNet
40
54
57
42
5,398
7,202
7,389
5,265
Total
93
284
286
202
11,741
37,877
37,076
25,321
Repeat interruptions - No. of GSL payments to tariff V customers as a result of more than 10 unplanned interruptions within a
calendar year
Envestra
–
2
–
0
-
267
-
-
Multinet
1
20
19
8
135
2,667
2,463
1,003
SP AusNet
–
6
3
6
-
800
389
752
Total
1
28
22
14
135
3,734
2,852
1,755
Lengthy interruptions — No. of GSL payments to tariff V customers as a result of interruptions lasting greater than 12 hours but
less than 18 hours
Envestra
84
180
208
161
11,336
24,006
26,965
20,181
Multinet
42
108
84
67
5,668
14,404
10,890
8,398
6
7
25
17
810
934
3,241
2,131
132
295
317
245
17,814
39,344
41,095
30,711
SP AusNet
Total
Appointments - No. of payments not met within 2 hours of scheduled time where customer was present
Envestra
–
–
–
–
–
–
–
–
Multinet
–
–
–
–
–
–
–
–
SP AusNet
–
1
–
–
–
44
–
–
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Total
–
1
–
–
–
44
–
–
Number of appointments not met by the agreed date where customer not present
Envestra
115
43
54
67
5,173
1,912
2,333
2,799
–
–
–
0
-
-
-
-
SP AusNet
46
36
35
34
1,844
1,600
1,512
1,421
Total
161
79
89
101
7,017
3,512
3,846
4,220
Multinet
Number of connections made more than 1 day but within 2 days of agreed date ($80)
Envestra
54
59
48
78
3,887
4,197
3,319
5,215
Multinet
–
–
–
0
-
-
-
-
74
51
83
71
5,326
3,628
5,739
4,747
128
110
131
149
9,213
7,824
9,057
9,961
SP AusNet
Total
Number of connections made more than 2 days but within 3 days of agreed date ($160)
Envestra
10
10
37
16
1,439
1,423
5,116
2,139
Multinet
–
1
–
0
-
142
-
-
SP AusNet
26
21
12
7
3,743
2,987
1,659
936
Total
36
32
49
23
5,182
4,552
6,776
3,075
Number of connections not made within 3 days of agreed date ($240)
Envestra
Multinet
39
20
25
43
8,421
4,268
5,185
8,624
1
–
–
0
216
-
-
-
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SP AusNet
37
32
41
24
7,989
6,828
8,504
4,813
Total
77
52
66
67
16,626
11,096
13,690
13,438
Number of GSL payments made to customers for connection delays
Envestra
103
89
110
137
13,747
9,887
13,621
15,978
1
1
–
0
216
142
-
-
SP AusNet
137
104
136
101
17,058
14,155
15,902
10,496
Total
241
194
246
238
31,021
24,184
29,523
26,474
Multinet
Source:
DNSP quarterly report.
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A.5
Gas escape / job priority classification
Priority A leaks
CSL Critical Supply loss (e.g. Hospital Equipment).
To be used where the loss of supply is life-threatening (such as when hospital equipment is affected), or when loss of supply could
adversely affect the state’s economy (major industry impacted). Replaces old enquiry code AHEZ–hospital equipment out of use.
EBD Escape—bad. Any uncontrollable gas leak or presence of gas inside/under a house, other building or inside a basement or a
severe escape outside a building not already covered by other A Priority codes. In determining the severity of an escape outside a
building the operator must rely on the callers description, considering factors such as length of time noticed, how strong or bad the
odour is, can the gas be heard escaping etc. Special instruction field must be populated with further detail.
EBS Escape—bad, street A bad street escape is generally the result of a main or service pipe being broken by workmen involved in
some form of excavation work. In most cases the broken pipe will already have been exposed by the workmen. Advise not to attempt
to cover or hose the leak, keep bystanders away from the immediate area, and do not start or move machinery at the site (may ignite).
Ground movement may also cause a main or service pipe to be broken resulting in a bad street escape.
EFB Police and/or fire brigade. Used if notification of a fire or gas escape is received from either the police or fire brigade.
EMG Emergency. Used in situations that would require corporate management to be advised, or would result in a level 4 or 5
Emergency.
EXP Explosion. An explosion in a main, service pipe, fitting line or appliance. For explosion in transmission pressure main or facility
refer to EMG.
FAP Fire—appliance A fire can occur at a gas appliance without the appliance burning and it can spread to adjoining fixtures in the
house. If the appliance is the cause of the fire this enquiry code should be used.
Information Specification for gas distributors—Version 4— January 2009 Essential Services Commission & Energy Safe Victoria Page
20 of 34 FAT Fatalities. If fatal accident or serious injury has resulted from a problem in the gas reticulation network. This would
include death caused by a gas escape, fire or explosion.
FHS Fire—house. When a house fire is reported at the address which has gas supplied. Fires reported by the fire brigade must be
processed using this enquiry code.
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FMN Fire—main. When a gas escape from a main has ignited. The gas escape may be the result of damage to the main during
excavation in the street. A fire at a main can also be reported as a nature strip or road fire. Gas leaking from the underground main
escapes to the surface and ignites.
FMT Fire—meter. While gas meters do not burn, (lead connections, meter gaskets and regulator diaphragms can melt / burn fuelling
fire) gas escaping from the meter can ignite, engulfing it in flames. This can be a threat to a house, depending on the meter location.
FSV Fire—Service. A customer reporting a fire in either yard may have a gas escape in either their Service Pipe or Fitting Line. If the
fire is in the area between their house and the gas meter, the fire could be the result of a gas escape in the fitting line. This type of
escape can be made safe by turning off the gas meter. If the fire is in between the gas meter and the property boundary, it should be
treated as a FSV.
EMT Escape Meter. When gas is reported escaping around the meter location. In many cases the gas escape can be controlled by
turning off the gas meter. However if this does not stop the gas escaping it may be necessary depending on the degree of the gas
escape to process the enquiry as an EBD.
Priority B leaks
EOT Escape Other. Used for a controllable gas escape which does not warrant the use of an 'A Priority' code, in a location not already
identified by any other escape code. If the escape is not controlled or is severe the A priority code EBD should be used. Special
Instruction field must be populated with further detail.
ESE Street Excavations. Used when a caller reports an excavation, or the warning lights or barricade around an excavation or work
site is considered unsafe, has collapsed, or protection removed/damaged. (Now includes old ESB and ESL codes)
EST Escape Street. Refers to a slight escape in the street caused by a leaky joint or broken main. If the escape is more severe of the
result of workmen excavating in the street.
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